OCC Files Amicus Brief Defending Federal Rate Authority for State-Chartered Banks
The Office of the Comptroller of the Currency (OCC) has stepped into a legal dispute over state bank powers. In an amicus brief, the regulator challenged a recent Tenth Circuit panel ruling that limits how state-chartered banks set interest rates. The case, National Association of Industrial Bankers v. Weiser, now faces further review by the full appeals court.
The OCCâs brief argues that the panel decision undermines federal banking laws designed to ensure consistency. According to the regulator, state-chartered banks rely on federal authority to operate across state lines. Restricting this power, the OCC claims, weakens the dual banking system and disrupts long-standing rules on competitive equality.
Comptroller Jonathan V. Gould supported the filing, stating that the ruling conflicts with Congressâs intent to maintain parity between state and national banks. The FDIC also submitted its own amicus brief, reinforcing the OCCâs stance and highlighting coordinated federal backing. The case has drawn additional interest, with the Independent Insurance Agents of America (IIAA) joining the OCC in filing a supporting brief. Legal observers note that the dispute centres on whether state banks can retain their rate-setting authority under federal law. The full Tenth Circuit must now decide whether to uphold or overturn the earlier panel decision.
The outcome will determine whether state-chartered banks keep their federal rate authority. A reversal could restore the previous framework, while an affirmation may force banks to adjust their lending practices. The ruling will also clarify how federal and state banking laws interact moving forward.
