This story appeared in Bank Digest.
The Office of the Comptroller of the Currency has responded to an inquiry made by Sens. Tom Carper, D-Del., and Mark Warner, D-Va., regarding the preemption provisions added by the Dodd-Frank Act. The OCC’s letter clarified how the agency would interpret particular aspects of the preemption provisions and described the related changes the agency planned to its regulations. The OCC noted that the statutory direction found in Dodd-Frank Act Section 1044 requires that the agency apply the conflict preemption standards articulated in the U.S. Supreme Court case of Barnett Bank of Marion County, N. A. v. Nelson, Florida Insurance Commissioner, et al.. The agency added that precedents, such as judicial decisions, interpretations and the OCC’s rules, which are consistent with the Barnett principles are preserved. In a statement, the American Bankers Association, which originally released the letter, noted, “The OCC's action helps clarify the rules of the road for national banks and how they serve their customers. This means that bank customers—regardless of where they live or work—will have a consistent, high-level set of consumer protections nationwide.”