District Court Tosses CSBS Challenge for Second Time
A U.S. District Court in Washington, D.C., on Wednesday dismissed a lawsuit by state regulators challenging the Office of the Comptroller of the Currency's (OCC) fintech charter. The Conference of State Bank Supervisors (CSBS) contends the OCC lacks the authority to grant the tailored charter. Federal Judge Dabney Friedrich's decision echoes her May 2018 ruling in the same matter.
“In its most recent complaint, CSBS does not allege that any financial technology company … has applied for a charter, let alone that the OCC has chartered a Fintech.” The latest ruling did not appear to preclude legal challenges if the OCC were to accept or approve an application. A separate pending case brought by the New York State Department of Financial Services was allowed to proceed by a judge in May 2019. OCC Chief Joseph Otting says that move had a chilling effect on nonbank applications.
September 4th, 2019 by Dan Bucherer