WASHINGTON The Office
of the Comptroller of the Currency filed suit against the New York Attorney
General today, seeking a declaratory judgment and preliminary injunction to prevent
him from interfering in the OCCs fair lending examination and supervision
processes at national banks.
The OCCs action follows the filing of a suit by The Clearing House Association,
New York, seeking similar remedies against the New York Attorney General.
The OCC is absolutely
committed to assuring that the national banking system is free of lending
discrimination of any sort, said acting Comptroller of the Currency Julie L.
Williams. This issue is vital and it
is complex and it must not be politicized. The OCC will take whatever steps are
needed to assure that the lending practices in the national banking system are
reviewed thoroughly, carefully and fairly.
Last month, I reached
out to the Attorney Generals office to discuss how we each might work in a
complementary way, in the areas of our respective jurisdiction, to ensure that
laws against lending discrimination are upheld, she continued. The Attorney Generals office has indicated
that it is not interested in pursuing such a collaborative approach. Unfortunately, the Attorney Generals
actions undermine the OCCs ability to effectively implement our supervisory
responsibilities.
While the New York
Attorney Generals office has legitimate authority for a great number of
lending institutions operating in the state, federal law provides that lending
activities of national banks and their subsidiaries are under the jurisdiction
of the OCC, said Ms. Williams.
These are not new
legal standards, she added. The laws
here were enacted in 1864.
The American people
are best served when the resources of government are used effectively and
efficiently, she said. We at the OCC stand ready to work constructively with
the New York Attorney Generals office as we pursue our respective areas of
work.
The OCC is in the
process of assessing new data collected under the Home Mortgage Disclosure Act
as part of its fair lending evaluations.
The efforts of the New York Attorney General to examine and direct the
actions of national banks and their operating subsidiaries creates confusion
and uncertainty concerning the OCCs authority and its supervisory expectations
for national banks that undermines our ability to carry out our supervisory
responsibilities, said Ms. Williams.
In its suit, the OCC noted
that the New York Attorney Generals office has sought both public and
non-public information about the mortgage lending business of four national
banks that do business in New York.
However, Section 484 of
the National Bank Act, enacted in 1864, generally forbids any assertion of
visitorial authority by state officers to supervise or examine national banks
and prohibits state authorities from inspecting the records of national banks
or bringing enforcement actions against national banks, except as specifically
authorized by federal law. Under
federal law and OCC regulation, the operating subsidiaries of national banks
are treated the same as the bank itself.
In seeking relief, the
OCCs complaint states that the New York Attorney Generals violation of the
federal law interferes with the OCCs ability to carry out its responsibilities
under federal law, causing irreparable harm to the OCCs administration of the
national banking system.
The defendants assertion of visitorial authority over national
banks and their operating subsidiaries represents an interference with the
OCCs plenary authority to ensure the efficiency and integrity of the federal
national bank supervisory regime, the complaint states.
In addition to seeking
a preliminary injunction, the OCC is asking the federal court to:
Declare that the state
Attorney General may not demand, examine, or inspect the books and records of
national banks or their operating subsidiaries, except as specifically
authorized under federal law.
Declare that the New
York agency has no authority to enforce the Equal Credit Opportunity Act, New
York Executive Law section 296-a or other laws, rules or regulations concerning
the banking activities of national banks or their operating subsidiaries except
as specifically authorized under federal law.
Permanently enjoin the New York Attorney
General from demanding, examining or inspecting the books and records of any
national banks or their operating subsidiaries, except as specifically
authorized by federal law.
Permanently enjoin the New York Attorney
General from instituting any enforcement activities against national banks or
their operating subsidiaries, except as specifically authorized by federal law
and from any further usurpation of the OCCs exclusive authority to supervise
and examine national banks or their operating subsidiaries, except as
specifically authorized by federal law.
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.