THE CONFERENCE OF STATE BANK SUPERVIsors (CSBS), Washington, D.C., announced that 35 attorneys general, supported by 43 state bank commissioners, have filed an amicus brief in support of Connecticut Banking Commissioner John P. Burke in Wachovia Bank N.A. and Wachovia Mortgage Corporation v. John P. Burke. The suit is pending in U.S. District Court for the District of Connecticut.
Signing on to the amicus brief are attorneys general from Alabama, Alaska, Arizona, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Vermont, Washington, West Virginia, Wisconsin and Wyoming.
Wachovia has challenged Connecticut's authority to license and supervise Charlotte, North Carolina-based Wachovia Mortgage Corporation, a state-chartered mortgage lender. The case raises the issue of whether states have authority to license and regulate state-chartered nonbank subsidiaries of national banks. Wachovia claims in its suit that federal law pre-empts the authority of state officials to regulate its mortgage subsidiary.
The state group's amicus brief contends that state-chartered operating subsidiaries of national banks do not possess any blanket immunity from state regulation.
"This case is part of a campaign by the...