FDIC Enters Preemption Arena

With states eager to regulate lending activities, set rates, and eradicate predatory lending, the state-chartered banks have turned to the FDIC for help. National banks have a clear advantage in interstate lending with the OCC preemptions. FDIC has decided to look into the possibility of leveling the playing field. Step one is to hold hearings on preemption issues. The big question, of course, is whether the FDIC has the authority to preempt state laws. The hearing is scheduled for May 24, 2005 and will be held at FDIC headquarters in Washington, D.C.

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 4, 4/05