Manatt Consumer Financial Services practice Leader Scott Pearson spoke with American Banker about the developing partnership between banks and fintechs after the U.S. District Court for the Northern District of California dismissed complaints from state attorneys general against the Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC).
According to the article, banks and fintechs will continue to be able to partner and do business across state lines despite the complaints submitted by the AGs in states led by California, New York and Illinois. “This is a big win for the bank model in the short term, but I don't think the war is over,” stated Pearson. The states’ attorneys general have not yet appealed the decision, but analysts claim it could be likely. “I think you'll see an appeal,” said Pearson, “and you could also see the FDIC and the OCC now, under new leadership, go back to the drawing board and reverse their own rule.”
American Banker subscribers can read the full article here.