Biden Agencies Split on State Bank Rules in High Court Showdown

A pending US Supreme Court case focused on a New York mortgage law is exposing a rift within the Biden administration over a federal banking regulator’s power to exempt national banks from state laws.

The case, Cantero v. Bank of America Corp., centers on whether national banks have to comply with a New York law requiring them to pay at least 2% interest on mortgage escrow accounts. The US Court of Appeals for the Second Circuit ruled in 2022 that the National Bank Act, a Civil War-era law governing national banks, exempted Bank of America Corp. from the New ...