State officials and federal government officials are once again at odds over who will have the authority to regulate America's banks. The Wall Street Journal reports that the U.S. Supreme court will begin to hear this issue tomorrow.
Several states have attempted to regulate banks by requesting that they reduce their ATM surcharges and/or disclose loan terms to their customers in a more comprehensible manner. However, The Wall Street Journal reports that federal officials have successfully blocked the states' attempts at regulation by citing The National Bank Act.
The National Bank Act was enacted in 1863. This act allows national banks to operate without the interference of state and local authorities.
With the financial failure and mismanagement of a slew of banks across the country, state authorities are arguing that they should be able to enact stricter measures to protect their constituents. We will soon see what the Supreme Court decides. Will a law enacted during the 19th century still stand.