State supervisor keeps on fighting against US fintech charter
The US Conference of State Bank Supervisors (CSBS) says it will renew its litigation efforts against the Office of the Comptroller of the Currency (OCC) over the decision to create a special purpose charter for fintechs.
Fighting against fintech
As reported last month, the OCC started accepting applications for national bank charters from non-depository fintech firms.
At that time, Comptroller of the Currency Joseph M. Otting said: “Over the past 150 years banks and the federal banking system have been the source of tremendous innovation that has improved banking services and made them more accessible to millions. The federal banking system must continue to evolve and embrace innovation to meet the changing customer needs and serve as a source of strength for the nation’s economy.”
However, the CSBS board of directors are not impressed and have approved moving forward with litigation against the OCC. “The case will be filed at a time deemed appropriate.”
According to the CSBS, a federal court had ruled prior litigation as “not yet ripe for consideration”.
Back in April, John W. Ryan, CSBS president and CEO, said: “The OCC’s action is an unprecedented, unlawful expansion of the chartering authority given to it by Congress for national banks. If Congress had intended it to be used for another purpose, it would have explicitly authorised the OCC to do so.”
He added: “If the OCC is allowed to proceed with the creation of a special purpose nonbank charter, it will set a dangerous precedent that any federal agency can act beyond the legal limits of its authority. We are confident that we will prevail on the merits.”
CSBS is the national organisation of bank regulators from all 50 states, American Samoa, District of Columbia, Guam, Puerto Rico and US Virgin Islands.
