The New York Bankers Association filed a complaint Tuesday seeking to invalidate “Local Law 38,” which calls for the creation of a Community Investment Advisory Board (the “CAIB”) to gather information about banks that take deposits from the City and to establish “best practices” for those banks regarding various initiatives, including (for example) offering financial services most needed by low and moderate income individuals. The New York Bankers Association brought a similar challenge last year, but Judge Failla dismissed the case without prejudice, largely because then-Mayor Bloomberg did not enforce it. The renewed complaint argues that the CAIB is up and running and that its regulation is preempted by state and federal banking laws:
Continue Reading Bankers Association Renews Challenge to City Regulation of Banks as Preempted by State and Federal Law