Going After Banks

It is funny that this article was in the paper today because I was telling a friend last night how Madoff got 150 years for the fraud he committed however banks have caused Americans to lose more money in equity than Madoff had stolen yet nothing is being done.

“The Supreme Court on Monday partially overturned federal rules on bank regulation, paving the way for state prosecutors to go after national banks for alleged violations of state fair-lending laws.

The 5-4 decision, written by conservative Justice Antonin Scalia but joined by the court’s four liberal justices, could have broader implications as policy makers attempt to overhaul the rules for financial regulation, particularly as the power struggle between state and federal regulators intensifies. The ruling chips away at 140 years of precedent in federal banking policy.

The decision, in Cuomo v. Clearing House Association, was a surprise victory for consumer groups and state officials because their repeated attempts to challenge the National Bank Act of 1864 have nearly always been rejected in court. The ruling will allow state attorneys general in certain cases to sue any of the country’s 1,500 national banks, including major divisions of Citigroup Inc., Bank of America Corp., J.P. Morgan Chase & Co. and Wells Fargo & Co.”