On October 25, 2018, the Conference of State Bank Supervisors (“CSBS”) filed a complaint in the United States District Court for the District of Columbia to stop the Office of the Comptroller of the Currency (“OCC”) from issuing special purpose national bank charters to fintech companies.  The lawsuit follows a similar suit against the OCC by the New York State Department of Financial Services (“DFS”) in the United States District Court for the Southern District of New York, which we discussed in September.

Continue Reading State Regulators Renew OCC Suit Over Fintech Charter

On September 14, 2018, Superintendent of the New York State Department of Financial Services (“NYSDFS”) Maria T. Vullo filed a complaint in federal court against the U.S. Office of the Comptroller of the Currency (“OCC”) to block the OCC from issuing any special purpose national bank (“SPNB”) charters. The OCC announced last month, after much

On February 6, 2018, the Conference of State Bank Supervisors (“CSBS”) – the nationwide organization representing banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands – announced that seven states have agreed to a compact that standardizes five major areas of the licensing process for money

On April 26, 2017, the Conference of State Bank Supervisors (“CSBS”) filed a complaint against the Office of the Comptroller of the Currency (“OCC”) and Comptroller of the Currency Thomas J. Curry to block the agency from going forward with its proposal to grant special purpose national bank charters to fintech companies. The CSBS filed this lawsuit in the U.S. District Court for the District of Columbia.

In December 2016, Comptroller of the Currency Thomas J. Curry announced that the OCC intended to issue special purpose national bank charters to fintech companies. We discussed this announcement and the accompanying white paper in detail in a client alert. The white paper argued the OCC had authority under the National Bank Act (“NBA”) to grant special purpose charters to companies that make “bank-permissible, technology-based innovations in financial services” and that engage in at least one of three enumerated activities: receiving deposits, paying checks, or lending money. After a round of public comment—which included a critical comment letter from CSBS—the OCC released a draft supplement to its Licensing Manual that explained how it intended to evaluate fintech companies applying for special purpose charters.

The CSBS’s complaint argues that the OCC does not have the authority to grant such charters to fintech companies under federal law and that the proposal would inhibit state regulators’ ability to protect consumers.  In a press release, CSBS President and CEO John Ryan stated, “The OCC’s action is an unprecedented, unlawful expansion of the chartering authority given to it by Congress for national banks.” Mr. Ryan further explained, “To protect consumers and taxpayers, to promote innovation, and to ensure fair and open competition, CSBS was forced to take legal action against the OCC charter.”

Continue Reading Conference of State Bank Supervisors Sues To Stop OCC Fintech Charters

With this week’s close of the comment period on the December 2016 whitepaper by the Office of the Comptroller of the Currency (“OCC”) regarding special purpose charters for fintech companies, which we discussed in a previous client alert, several key stakeholders have weighed in on the OCC’s plans.  Notably, on January 13, 2017, the Conference of State Bank Supervisors (“CSBS”), the nationwide organization representing banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands, submitted a comment letter opposing the OCC’s creation of the charter.  On January 17, 2017, the Superintendent of the New York State Department of Financial Services (“NYSDFS”), Maria T. Vullo, submitted a standalone comment letter also opposing the charter.

Continue Reading State Banking Regulators Oppose OCC Fintech Charter