Federal Preemption Developments and How Banks Are Coping

For a brief window in the early 2000s, preemption had its heyday as one of the sexier topics in financial services law. But eight years ago, the Dodd-Frank Act added provisions to the National Bank Act and Home Owners’ Loan Act that purported to “clarify” the circumstances under which federal law preempts state laws for federally chartered banks (i.e., national banks and federal savings associations), briefly stalling material preemption developments as courts and regulators digested what the amendments meant. Recent events, however, suggest that the Dodd-Frank amendments merely created the biggest preemption morass in the 155 years since Congress established the national banking system, and banks are left to work through the mess.

On a similar timeline, the rise of marketplace lending and other business models involving partnerships between bank lenders and non-bank lending platforms or program administrators has given new life to a set of preemption issues related to federally chartered and state-chartered banks’ ability to “export” interest rate requirements and restrictions from their home jurisdictions when they make loans.

Join Mayer Brown lawyers David Beam and Eric Mitzenmacher in a discussion about recent developments in federal preemption affecting banks and their service providers. David and Eric will lay out the primary issues and open questions related to preemption, discuss how banks are dealing with them and offer some ideas to guide banks’ reactions to developments that could reshape the industry in meaningful ways.

Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.

For additional information or to register, please contact GFM@mayerbrown.com.