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U.S. Supreme Court Limits State Regulatory Authority over Financial Institutions
By Matt Squire
printThe U.S. Supreme Court on Tuesday restricted state authority over financial institutions by ruling that Wachovia Corp.'s mortgage subsidiaries are not subject to Michigan regulations. In a 5-3 decision, the court said nationally chartered banks, which are regulated by the Office of the Comptroller of the Currency (OCC), and their subsidiaries are not subject to further regulation by the states. The ruling comes as federal lawmakers and regulators are pressuring mortgage lenders to address their business practices in light of the current subprime lending crisis. National foreclosures in January increased by 19 percent from the previous month and were up...
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