On February 27, 2024, the U.S. Supreme Court heard oral argument in Cantero v. Bank of America, N.A., a case involving the effect of the Dodd-Frank Act on scope of preemption under the National Bank Act (NBA).  The specific question before the Court is whether, post-Dodd-Frank, the NBA preempts a New York statute requiring banks to pay interest on mortgage escrow accounts.  The decision, however, could have ramifications well beyond the specific New York law at issue.

To date, national banks have relied on the Office of the Comptroller of the Currency’s (OCC) preemption regulations, as well as prior U.S. Supreme Court decisions concerning the NBA, to view many state consumer protection laws as preempted.  A ruling by the Supreme Court in Cantero that the NBA does not preempt the New York law could implicitly call into the question the validity of the OCC’s preemption regulations and prior caselaw and could have significant compliance, enforcement, and civil litigation implications for national banks.

On April 3, 2024, from 1:30 p.m. to 2:45 p.m., we will host a special webinar roundtable featuring four attorneys who filed amicus briefs with the Supreme Court, with two briefs supporting Bank of America and one supporting the plaintiff.  Our panelists will discuss the arguments made in favor of and against preemption by both parties and their amici, share their reactions to the oral argument, provide important insights into the thinking of the nine Justices, offer their predictions for how and when the Court will rule, and discuss potential implications for national banks.  For more information and to register for the webinar, click here.