Connecticut Appeals Lending Case to Supreme Court

By Jonathan Stempel, Reuters

Connecticut on Friday asked the U.S. Supreme Court to reverse a lower court decision preventing states from enforcing their own laws to stop abusive lending practices.

In the closely watched case, the state is appealing a July decision by the U.S. Court of Appeals for the Second Circuit in a case brought by Wachovia Corp. that state banking officials cannot regulate operating units of national banks.

The court instead found that weaker federal rules, such as the National Bank Act and regulations issued by the Office of the Comptroller of the Currency, should apply. It said OCC regulations "reflect a consistent and well-reasoned approach" to letting national banks exercise their powers.

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