WASHINGTON—Acting Comptroller of the Currency Rodney Hood this week reaffirmed that the OCC’s federal preemption regulations over state laws are valid.
In a letter to the Conference of State Bank Supervisors, Hood not only stressed that point, but emphasized the regulations are “critical to ensuring the continued strength of our nation’s banking system.”
Hood’s letter was sent in response to a CSBS letter to the OCC that states OCC’s preemption regulations are unlawful and should be rescinded under presidential executive orders.
“Contrary to your assertions, the OCC’s preemption regulations are wholly consistent with Dodd–Frank and Supreme Court precedent and thus meet the requirements of EO 14219. For your awareness, the OCC reviewed its preemption regulations following Dodd–Frank’s enactment,” Hood wrote.
“The OCC considered the relevant statutory language, legislative history, and judicial precedent and concluded that Dodd–Frank codified the conflict preemption standard in Barnett Bank of Marion County, N.A. v. Nelson, including the antecedent cases it cited,” Hood continued. “This conclusion is consistent with the Supreme Court’s subsequent decision in Cantero v. Bank of America, N.A., which rejects arguments that Dodd–Frank created a new preemption standard and instead notes that ‘Dodd–Frank adopted Barnett’ and that Barnett ‘was also the governing preemption standard before Dodd–Frank.’”
Hodd noted the OCC applied this same standard when it identified certain preempted and non-preempted state laws in its regulations in 2004 and again when it reviewed the regulations in 2011.
“The OCC’s regulations are consistent with applicable law,” concluded Hood.