New York to Seek Reversal of Decision Allowing Regional Interstate Banking: State Official Says Pacts Are Unfair Way of Excluding New York Banks
Sudo, Philip T., American Banker
New York to Seek Reversal of Decision Allowing Regional Interstate Banking
State Official Says Pacts Are Unfair Way of Excluding New York Banks
The State of New York will join Citicorp and Northeast Bancorp Inc. in asking the Supreme Court to overturn a recent decision allowing regional interstate banking.
Vincent Tese, the state banking superintendent, said a federal appeals court decision three weeks ago upholding regional interstate banking laws is unfair to New York banks.
An increasing number of states, he said, are "sticking it to New York' by forming regional compacts that allow mergers across state lines only between banks from states with reciprocal laws. Many neighboring states have adopted such laws in an effort to protect their boundaries from money center banking giants seeking to expand nationwide.
"You have the New England states, the Middle Atlantic states, the Middle Western states--and we New York banks are with Bermuda and Botswana,' Mr. Tese said.
The regional laws have spurred interstate mergers in New England, and several Southeast states recently passed similar laws. The appeals court ruling is expected to encourage other states to pass laws of their own.
The decision by the U.S. Court of Appeals for the Second Circuit upheld three Federal Reserve Board decisions that approved mergers of Connecticut, Rhode Island, and Massachusetts firms.
Different Reasons for Opposition
The appellants had been seeking an end to regional interstate banking for separate reasons. …