On April 17, the Supreme Court ruled (5-3) in Watters v. Wachovia Bank N.A. that the Office of the Comptroller of the Currency's governance of Wachovia's mortgage business -- whether conducted by the bank itself or through an operating subsidiary -- preempts state banking standards. A Congressional override of the decision is unlikely, but expect pressure from the Congress on the OCC and the Federal Reserve to give greater emphasis to consumer protection.