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States were too quick on the draw suing OCC over FinTech charters

Joe Mont | May 2, 2018

The Conference of State Bank Supervisors (CSBS) has suffered a setback to its lawsuit against the Office of the Comptroller over its plan to offer bank charters to FinTech companies.

A court ruling from the U.S. District Court for the District of Columbia, filed on April 30, says their lawsuit is too early for its consideration because the OCC’s plan has yet to be implemented.

Their arguments were deemed “not persuasive when considered against the hardship to the OCC if each minor step towards a potential agency policy were litigated one-by-one as the policy becomes more settled,” the opinion by Judge Dabney Friedrich says. “For these reasons, the prudential ripeness doctrine counsels in favor of allowing time to sharpen this dispute before deciding it. Indeed, there may ultimately be no case to decide at all if the OCC does not charter a Fintech. Therefore, even if CSBS had successfully...

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