In a 5-to-3 decision, the Supreme Court just ruled in Watters v. Wachovia Bank that state regulators can’t impose certain regulations on national banks’ operating subsidiaries.
CEI filed an amicus brief on behalf of Wachovia Bank in its battle with Michigan state regulators explaining why federal preemption of state regulation is good for both consumers and banks. The brief was joined by seven prominent economists and legal scholars.
State banking regulations drive up the cost of credit for borrowers and result in banks being subjected to a confusing hodgepodge of regulations imposed by many different states. They also result in banks being subject to redundant paperwork, red tape, and oversight by multiple state and federal regulators.