OVERSIGHT: Ruling gives BB&T new options
Sunday, April 29th, 2007
By Chris Fitzsimon
By Richard Craver JOURNAL REPORTER Sunday, April 29, 2007
A recent U.S. Supreme Court decision that made the federal government the regulator of subsidiaries of national-charter banks has important implications for BB&T Corp. and the N.C. Banking Commission.
On April 17, the Supreme Court voted 5-3 in Watters vs. Wachovia Bank N.A. that the federal government, primarily the Office of the Comptroller of the Currency, is the regulator of the subsidiaries.
About 1,700 national banks, led by Wachovia Corp., have said that subsidiaries of national-charter banks should not have to deal with a dual regulatory system of federal and state banking laws. Ending the dual system would reduce their regulatory expenses significantly for the subsidiaries, the banks said.
Mark Pearce, the deputy commissioner of banks for North Carolina, acknowledged that the Supreme Court decision does “tip the scales toward national charters for banks with an interstate presence even though we think the ruling was wrongly decided.”
Pearce said that losing BB&T as a client would significantly affect the commission’s ability to provide services to the other 72 commercial banks and 17 savings banks it oversees. BB&T provides about 40 percent of the annual regulatory fees to the N.C. Banking Commission, or between $3.6 million and $4 million. (more…)
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