NY Bank Regulator sued the US to cancel its decision to give a national bank charter to online lenders

NY Bank Regulators on Friday sued the Federal Government to cancel its decision to give the national bank charters to the lenders and online payment company. And that step is bad and will shake the financial markets more effectively regulated by the State. The uncertainty that occurred on Wednesday when the Conference of State Bank Supervisors, a group of State regulators, said they intend to file a lawsuit challenging the authority of the OCC, updating a previous legal challenge to no avail.

Maria Vullo, the Superintendent of the Financial Services Department of New York, filed a lawsuit against the Office of the Comptroller of the currency in federal court in Manhattan on Friday asked the judge to declare that the step exceeds the authority of the Office and to block it from proceeding.

Vullo also oversees more than 2,200 banks, financial services and insurance company with about $7 trillion of the total assets.

"OCC does not have the legal authority to do what they want, " says Margaret Liu, Deputy General Counsel Conference of State Bank Supervisors. He would not specify whether State regulators planned to sue either before or after the company has submitted an application for the Charter, through the statements of WSJ.

The former head of the OCC Thomas Curry in the year 2016 financial technology companies to bring in banking and met with lawsuits.  The case was dismissed in federal court because the OCC has not prepared a chartering policy, quoted from pages latimes. New York's main financial regulator said he would challenge the Charter specifically if OCC moving forward. The Conference of State Bank Supervisors earlier this week gave the green light to renew litigation against that step.


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