Pearson Quoted in American Banker on Impact of Litigation on Fintech Innovation

As states and OCC keep butting heads, does innovation suffer?
– American Banker

Manatt Financial Services partner Scott Pearson spoke with American Banker on the impact litigation between federal and state regulators is having on financial services companies that are working to develop new products. He noted that the litigation is hampering innovation in this sector by prolonging uncertainty over challenges to bank-nonbank partnerships, saying, “it could really change the risk calculus for these companies.” Pearson added that the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation’s valid-when-made rules were meant to resolve questions raised following the 2015 Madden court decision, and that state “challenges to those rules sustain the uncertainty.”

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