October 25, 2018

Statement by New York Financial Services Superintendent Maria T. Vullo Regarding the Lawsuit Filed by the CSBS Challenging the Authority of the Comptroller of the Currency to Create a Nonbank Special-Purpose National Bank Charter for “Fintech” Companies

“The New York State Department of Financial Services (DFS) strongly supports the action taken today by the Conference of State Bank Supervisors (CSBS) against the Office of the Comptroller of the Currency (OCC), following the Department’s own lawsuit against the OCC filed last month.  DFS ardently concurs with CSBS that the National Bank Act does not provide the OCC with authority to create a new national bank charter for ‘fintech’ companies.  The proposal threatens to create an entirely new federal regulatory regime, threatening state sovereignty, community banking, and strong state consumer protection laws, including New York’s usury laws.  State regulators like DFS are experienced and best equipped to regulate cash-intensive nonbank financial service companies doing business in the state, including the necessary oversight and enforcement of anti-money laundering, payday lending, consumer identification and transaction monitoring laws, for which the OCC is not nor authorized.”