DFS to Court: OCC Fintech Charter 'Undermines' Its Authority
The state Department of Financial Services, answering the federal government's motion to dismiss, argues that it has standing to sue the Office of the Comptroller of the Currency over its proposal to regulate fintech companies with a special-purpose bank charter, calling it an "unabashed power grab."
September 27, 2017 at 04:02 PM
4 minute read
The U.S. Office of the Comptroller of the Currency's plan to offer a special-purpose bank charter for financial technology companies “undermines” the Department of Financial Services' regulatory authority in New York, the state agency argued in court documents.
A federal court in Manhattan should not dismiss a complaint filed in May by New York's banking regulator, Vullo v. Office of the Comptroller of Currency, 17 Civ. 3574, against the OCC, an independent office within the U.S. Treasury Department, because the state agency has standing to sue the agency, DFS lawyers said in the memorandum of opposition to dismiss filed on Monday.
“The Fintech Charter Decision is an unlawful assertion of power that usurps New York consumer protection laws and would preempt plaintiff's ability to regulate any number of the over 600 nondepository institutions she currently regulates,” wrote Matthew Levine, the executive deputy superintendent for enforcement at the department.
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