FDIC
Federal Register Citations
World's Foremost Bank
Robert E. Feldman, Executive Secretary
Comments/Legal ESS
Room 360
Federal Deposit Insurance Corporation
550 17th
St NW
Washington, DC 20429
Re: Petition for Rulemaking to Preempt Certain
State Laws
Dear Mr. Feldman:
World's Foremost Bank ("WFB") is a Nebraska
state-chartered bank located in Sidney, Nebraska that is
primarily engaged in interstate credit card lending. WFB
appreciates the opportunity to comment on the FDIC's Petition
for Rulemaking to Preempt Certain State Laws.
WFB supports the Financial Services
Roundtable's petition for rulemaking to preempt certain state
laws. We believe that consumers are best served by the
dual-banking system of national and state banks, and that the
FDIC has the authority to make rules to ensure parity between
state-chartered banks and national banks in interstate
activities and operations. Consumers, state banks, and the
dual-banking system in general would benefit if FDIC-insured
state banks were governed by a single framework of law and
regulation to the same extent as national banks.
While WFB does not have branches in states
other than Nebraska (we have customers in all 50 states), we
are supportive of the petition's argument that the FDIC should
adopt rules to provide that the home state law of a state bank
will apply to its activities in other states to the same
extent as the National Bank Act ("NBA") applies to the
activities of national banks. We believe that Congress
intended to ensure parity between state banks and national
banks through enactment of the Riegle-Neal Amendments Act of
1997 and section 104(d) of the Gramm-Leach-Bliley Act.
Currently, we believe that there is uncertainty
regarding which state laws apply to state banks that operate
on an interstate basis. This uncertainty may lead to lost
opportunities for state banks and consumers, due to fears of
potential litigation or enforcement actions. Federally
chartered institutions do not have the same concerns; the
precedent of national preemption of state laws has led to
national banks and thrifts operating under a single set of
federal rules. State banks are at a competitive disadvantage
compared to national banks, and this disparity could weaken
the state charter and the dual-banking system.
WFB believes that the FDIC has the authority
to make rules to address this uncertainty and provide state
banks with the ability to stay competitive with national
banks in interstate operations. The FDI Act permits the FDIC
to implement rules to enforce existing laws, such as the
Riegle-Neal Amendments of 1997 and the Gramm-Leach-Bliley
Act. Absent any express rulemaking and clarification by the
FDIC, state-chartered institutions do not benefit from the
protections Congress intended.
We support the Roundtable's position that
rulemaking to ensure state banks can operate on a level
playing field similar to national banks will promote the
safety and soundness of state banks. In addition, rulemaking
to clarify these questions will aid the FDIC and state
banking departments with regulation and enforcement action.
By expressly addressing the preemption of
certain state laws for state-chartered banks engaged in
interstate operations through rulemaking, the FDIC will
improve the quality of the state charter. Doing so will
ensure that state-chartered institutions are not at a
competitive disadvantage from a lack of a single framework
of rules and regulations. Ultimately, this rulemaking would
benefit the dual-banking system and have positive effects
for state-chartered institutions and their customers.
Sincerely,
David A. Roehr President/CEO
World's Foremost Bank