Breaking News– CSBS sues OCC regarding Fintech charter

The States sue the OCC over Fintech charter

States have taken their dislike over the OCC’s planned fintech charter a step further and sued the OCC in the US District Court for the District of Columbia.  The Conference of State Bank Supervisors sued the OCC and Comptroller Curry arguing, among other things, that the “business of banking” requires an institution to take deposits.  Strangely, this ignores existing national bank models: credit card banks, trust banks, and cash management banks.  All of this being said, CSBS also argues that the OCC violated the Administrative Procedure Act by publishing only a high-level white paper and supplement to the Comptroller’s Licensing Manual (which they did seek feedback on) — thereby avoiding publishing new rules that welcome the public vetting process.  This argument will likely have more teeth.

Read the Complaint here: 2017-04-26 – Complaint – CSBS v. OCC

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