FEDERAL PREEMPTION IN THE DUAL BANKING SYSTEM
This course provides an overview of banking preemption.
In this course, we will learn the following:
1) the general principles of federal preemption.
2) a brief history of the American “dual banking system.”
3) the Supreme Court’s decision in Barnett Bank of Marion County, NA versus Nelson, where the Court held that federal law preempts state laws that “significantly interfere” with the powers of national banks.
4) review two Supreme Court decisions concerning the extent to which states may exercise “visitorial powers” over national banks.
5) the Office of the Comptroller of the Currency’s (or OCC’s) preemption rules and provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning the preemption of state consumer protection laws.
Finally, 6) the course outlines a number of current issues in banking preemption, including
(a) the extent to which non-banks can benefit from federal preemption of state usury laws,
(b) the OCC’s decision (to grant special purpose national bank charters to financial technology (or FinTech) companies, and
(c) proposals to provide legal protections to banks serving marijuana businesses that comply with state law.