A Tuesday, July 14, 2009 article in Compliance Week quoted John F. Cooney, a partner in Venable's Banking and Financial Services Practice Group, on the June 29th U.S. Supreme Court decision on Cuomo v. Clearing House. The decision, which allows states some consumer protection enforcement over national banks, said that states can investigate national banks for discrimination and other crimes, but only with a court's help.
"Implicitly, the decision will allow the state attorneys general to enforce other state consumer protection statutes against national banks," Cooney said. "The decision means that national banks will be subject to a greater risk of investigations and enforcement actions by state attorneys general."
According to the article, the decision is a rare defeat for the OCC, which has a long history of successfully defending and expanding its turf in the courts. "Until today, the OCC had an excellent track record of success in persuading the Supreme Court to adopt a broad interpretation of its powers," said Cooney.