What's New
On April 17, the Supreme Court ruled 5-3 that only the U.S. Office of the
Comptroller of the Currency (OCC) has the power to regulate subsidiaries of
federally chartered banks, denying states the right to regulate the predatory
mortgage-lending practices of national bank subsidiaries. The three dissenting
Supreme Court justices said they found it “especially troubling that the court
so blithely pre-empts” laws designed to protect consumers. This ruling comes at
a time when missed home mortgage payments and foreclosures have risen to record
levels in some parts of the country. U.S. PIRG had joined an amicus prepared by
the Center for Responsible Lending supporting the right of states to regulate
predatory mortgage lenders.
Overview
Over the course of American history, state legislatures have often
proved more nimble than Congress at addressing the needs of
constituents. In fact, states will often serve as “laboratories of
democracy.” Good ideas and sound policies will spread to other states
and set a precedent for the federal government.
For instance,
10 states from Washington to Maine have passed more stringent emission
standards for cars and SUVs. More than a dozen states have passed laws
to allow consumers to defend themselves from identity theft by freezing
their credit reports, and preventing thieves from opening new lines of
credit. Voters in California passed a law that requires foods
containing mercury and other toxic contaminants to be labeled.
Unfortunately,
powerful corporate interests are pressing Congress and the Bush
administration to wipe these and other effective state laws off the
books and prevent states from charting their own course. U.S. PIRG is
working to ensure that states can continue to solve local problems and
do what it takes to protect the health and well-being of their
residents—especially when the federal government has failed to do so.
Preemption Alert
Download the PDFs of our Preemption Alerts:
Issue 6, April 2007
Issue 5, December 2006
Issue 4, August 2006
Issue 3, April 2006
Issue 2, March 2006
Issue 1, February 2006
To subscribe to Preemption Alert, send an email to Research Director Alison Cassady.
Articles
Arthur Wilmarth Jr., BNA’s Banking Report, Vol. 86, No. 8, February 20, 2006. Posted with permission from the author. Download the article. (PDF)
Powerful special
interests are persuading Congress and the White House to impose federal
law while wiping out the states' ability to pass stronger standards. A
letter to members from former U.S. PIRG Executive Director Gene
Karpinski, Winter 2004 Issue, U.S. PIRG Citizen Agenda Download the article. (PDF)
Written by Ed Mierzwinski, U.S. PIRG Consumer Program Director, for the
Government, Law and Policy Journal, New York State Bar Association,
Spring 2004 (Vol. 6, No. 1, pgs. 6-12). Download the article. (PDF)
