Regulating bank subsidiaries until ordered to stop, says top bank regulator

Mississippi’s Department of Banking has returned to licensing wholly owned subsidiaries of federally chartered banks and thrifts and enforcing their compliance with state financial consumer protection laws.

Banking Commissioner John Allison cites the Dodd-Frank Wall Street Reform and Consumer Protection Act as authority for restoration of enforcement powers the state ceded to the Office of the Comptroller of the Currency in 2004. In that year, the OCC issued rules that freed national banks and their operating subsidiaries from any state law that could hamper their ability to make loans and accept deposits.

Dodd-Frank has turned back the clock, Allison said. “Before some…

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