On May 25th, the OCC published for comment a proposed rule implementing several provisions of the Dodd-Frank Act, including the transfer of functions from the Office of Thrift Supervision and changes to national bank preemption and the OCC's visitorial authority. Among other things, the proposal would:
- Implement a moratorium on changes in control of credit card banks and trust banks;
- Revise Federal branch and agency rules to reflect the permanent increase in deposit insurance coverage; and
- Amend OCC rules pertaining to preemption and visitorial powers.
The preemption-related amendments:
- Eliminate preemption for national bank operating subsidiaries;
- Apply national bank and national bank subsidiary preemption standards, as well as the visitorial powers standards applicable to national banks, to Federal thrifts and their subsidiaries;
- Eliminate any ambiguity concerning the preemption standards in OCC regulations by removing language from OCC rules that provides that state laws that "obstruct, impair or condition" a national bank's powers are preempted; and
- Revise the OCC's visitorial powers rule to conform to the holding of the Supreme Court's decision, as incorporated by the Dodd-Frank Act, recognizing the ability of state attorneys general to bring enforcement actions in court to enforce non-preempted state laws against national banks.