Sarbanes Raps OCC Pre-emption Rule

Sen. Paul Sarbanes, D-Md., and several other senators are planning to register their opposition to a proposal by the Office of the Comptroller of the Currency that would pre-empt state predatory lending laws and other consumer protection laws that may interfere with the operations of national banks and their subsidiaries.Sen. Sarbanes told a Women in Housing and Finance luncheon that the OCC is moving toward a position where the agency could override any state law that has any impact on national banks. "I don't think that is a proper standard," the ranking Democrat on the Senate Banking Committee said. "We are about to communicate that to the comptroller of the currency." Rep. Sue Kelly, R-N.Y., and other New York members of the House Financial Services Committee are working on a letter that is expected to urge the comptroller to hold off on his pre-emption rule until Congress can examine the issue next year.