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Cuomo v. Clearing House Association

Docket No.: 08-453
Certiorari Granted: Jan 16 2009
Argued: April 28, 2009
Decided: June 29, 2009

PartyNames: Andrew M. Cuomo, Attorney General of New York v. The Clearing House Association, L.L.C., et al.
Petitioner: Andrew M. Cuomo, Attorney General of New York
Respondent: The Clearing House Association, L.L.C., et al.

Court Below: United States Court of Appeals for the Second Circuit

Andrew M. Cuomo, Attorney General of New York
v.
The Clearing House Association, L.L.C., et al.
Background:

12 U.S.C. § 484(a), a provision of the National Bank Act, prohibits the exercise of "visitorial powers" as to national banks, except where those powers are authorized by federal law, vested in the courts of justice, or exercised by Congress or a House or committee thereof. The Office of the Comptroller of the Currency has issued a regulation (12 C.F.R. § 7.4000) interpreting § 484(a) to preempt state enforcement of state laws against national banks, even when the state laws are not substantively preempted.

Question Presented:

1. Whether 12 C.F.R. § 7.4000 is entitled to judicial deference under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984). 2. Whether 12 C.F.R. § 7.4000 is invalid because it is inconsistent with the authoritative construction of the National Bank Act by this Court in First National Bank in St. Louis v. Missouri, 263 U.S. 640 (1924).

Question:

Are state officials precluded from regulating and enforcing banking activities governed by the National Bank Act and the Office of the Comptroller of the Currency's regulations?

Note:

EXPEDITED BRIEFING SCHEDULE.

Holding: affirmed in part, reversed in
Vote: 5-4
Opinion By: Justice Antonin Scalia
Read CUOMO V. CLEARING HOUSE ASSOCIATION opinion (PDF)