Statement From Superintendent Of Banks Richard H. Neiman On Decision In Cuomo V. Clearing House
June 29, 2009
New York N.Y.: Richard H. Neiman, Superintendent of Banks for New York State today applauded the U.S. Supreme Court’s decision in Cuomo v. Clearing House in favor of state authorities.
“I am thrilled that the U.S. Supreme Court has recognized the vital role of the states in consumer protection,” said Richard H. Neiman. “This decision is a strong endorsement of states’ authority to enforce applicable laws on all financial institutions doing business within their jurisdiction. It is also in-line with the Obama Administration’s recent proposal for financial regulatory reform which would further correct overreach in federal preemption.”
“By ruling in favor of New York Attorney General Andrew Cuomo’s right to bring judicial enforcement actions, the Supreme Court has removed the unfettered discretion of the Office of the Comptroller of Currency (OCC) that had shielded national banks from state consumer protection laws. States like New York were the first to sound the alarm on predatory lending issues more than 10 years ago. Unfortunately, instead of cooperating, the primary federal regulators thwarted state efforts through preemption, exacerbating the subprime crisis.”
“It is now up to Congress to put President Barack Obama’s proposal into action and enforce in statute that federal regulations will serve as a floor and not a ceiling to state consumer protections laws. These decisions will only serve to strengthen the dual banking system and ensure that consumers in all states will enjoy the protection of more cops on the financial beat, not less,” said Neiman.
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.