April 17, 2007

ABA STATEMENT ON SUPREME COURT DECISION ON WATTERS v. WACHOVIA

by Edward L. Yingling, ABA president and CEO

“We’re pleased that the Supreme Court has resolved this issue once and for all.  The Court’s decision reaffirms that, for national banks, the business of banking – whether through the bank itself or an operating subsidiary – is regulated by the OCC.

            “Avoiding a patchwork of duplicative and conflicting federal and state regulation makes it easier for national banks to grant credit to customers across state lines and preserves our industry’s competitive structure. 

“It’s important to note that operating subsidiaries are subject to the full range of federal consumer protection laws that apply to national banks.  They are also subject to state laws that don’t intrude on federal authority, including a range of state contract, tort, tax and criminal laws. 

            “Today’s decision puts the focus back where it belongs.  Instead of being distracted by who is enforcing which law, now the industry can focus on the more important issue of compliance with the law itself.”

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The American Bankers Association, on behalf of the more than two million men and women who work in the nation's banks, brings together all categories of banking institutions to best represent the interests of this rapidly changing industry.  Its membership-which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks-makes ABA the largest banking trade association in the country.