Pearson Quoted in American Banker on the OCC’s Ongoing Battle for a Federal Fintech Charter

OCC, states declare cease-fire in fintech charter case. Will it hold?
– American Banker

Manatt Financial Services Partner Scott Pearson is quoted in American Banker on the state of the Office of the Comptroller of the Currency’s (OCC) court battle over a controversial fintech charter application. The publication noted that although the OCC’s special-purpose fintech charter first developed during the Obama administration, some spectators note political sentiment around bank chartering has shifted meaningfully for Democrats. “The current administration’s concern is focused much more on the consumer protection side,” Pearson said. “It’s a lot more concerned about federal charters being used as a vehicle to overcome state usury laws.” He also noted that the political reality may make it difficult for the OCC to continue its yearslong push to allow fintech firms partial access to the national bank charter. “I just don't see anyone applying for the fintech charter, or the fintech charter going anywhere, unless there’s new political leadership.”

American Banker subscribers can read the full article here.

manatt-black

ATTORNEY ADVERTISING

pursuant to New York DR 2-101(f)

© 2021 Manatt, Phelps & Phillips, LLP.

All rights reserved