Non-Bank Banks Not Restricted by Federal Reserve, Rules Court
From , Wire Reports, THE JOURNAL RECORD
WASHINGTON - The Federal Reserve Board is not authorized to regulate the increasing limited-service ("non-bank") banks, the U.S. Supreme Court said Wednesday in an important ruling for the financial community.
In an 8-0 decision, the court said the Fed lacks the power to check unrestricted growth of the financial institutions.
The decision enlarges the non-bank bank loophole problem, said Laura Pringle, vice president and general counsel for the Oklahoma Bankers Association. The bankers association had filed a brief in the case supporting the Federal Reserve.
"It's our understanding that Congress didn't act to close the loophole because they expected …
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Publication information: Article title: Non-Bank Banks Not Restricted by Federal Reserve, Rules Court. Contributors: From , Wire Reports - Author. Newspaper title: THE JOURNAL RECORD. Publication date: January 23, 1986. Page number: Not available. © 2009 THE JOURNAL RECORD. Provided by ProQuest LLC. All Rights Reserved.
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