Federally chartered banks can't create subsidiaries that are exempt from state laws

Published: September 1, 2006

U.S. Supreme Court , No. 05-1342
Issue: Mortgage Lending
Amicus Brief, filed 01 Sep 2006

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CRL's amicus brief in support of Michigan Commissioner of Insurance and Financial Services Watters in Watters v. Wachovia Bank. CRL, along with a number of other consumer groups, argues that Michigan's mortgage broker licensing law applies to employees of a national bank's operating subsidiary notwithstanding the Office of the Comptroller of the Currency's regulation treating a national bank's operating subsidiary as the same as the national bank itself for preemption purposes before the U.S. Supreme Court. The Sixth Circuit ruled in favor of Wachovia.