Supreme Court hears arguments that could change Big Bank Regulation

Federal and state regulators squared off over which part of government should serve as the nation’s watchdog for national banks. Threat of action by the federal regulators, Office of the Comptroller of the Currency stated, is “a significant incentive for national banks to address any compliance issues before they become serious problems.” And when such gentle measures fail, the comptrollers wrote, the agency “does not hesitate to take aggressive enforcement action against national banks.” The role of states, they argued, is to pass along information about “possible problems,” leaving enforcement to the federal regulators. More via NYT.