NYAG Appealing Ruling Barring National Bank Investigation

New York attorney general Eliot Spitzer's office confirmed today that the AG has asked a Federal Appeals Court to overturn an October ruling that blocked him from investigating whether some national banks are discriminating against minorities seeking residential mortgage loans.According to Reuters, the appeal, filed with the U.S. Court of Appeals for the Second Circuit of New York, challenges the Office of the Comptroller of the Currency's claim that state regulators have no jurisdiction over national banks. In October, federal judge Sidney Stein sided with the banks and the OCC by ruling that the national bank act prohibited the AG from sending a questionnaire to banks. Judge Stein also enjoined Mr. Spitzer from starting any legal action against federally chartered banks. Last year, Mr. Spitzer said the OCC indicated that it would continue its efforts to preempt the states from bringing consumer protection and anti-discrimination cases against national banks. "For the OCC, it seems 'collaboration' means the states stand down and let the banks enjoy the cozy embrace of their would-be national regulator," he said at the time.