Number: RS22485
Title: Watters v. Wachovia Bank, N.A.
Authors: M. Maureen Murphy, American Law Division 
Abstract: In Watters v. Wachovia Bank, the Supreme Court, in a 5-3 decision, ruled that Michigan mortgage lending requirements do not apply to a state-chartered operating subsidiary of a national bank. The decision was based on the Court's interpretation of various provisions of the National Bank Act, including provisions granting national banks the power to make real estate loans; the "incidental powers" clause, under which national banks have been authorized by the Office of the Comptroller of the Currency (OCC), the regulator of national banks, to conduct banking activities in operating subsidiaries; and a provision granting the OCC exclusive "visitorial" powers over national banks. This report summarizes the rulings in the case and potential implications.
Pages: 6
Date: Updated April 20, 2007