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US fintech community dealt blow by federal court as charter is denied

October 23, 2019

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The OCC’s charter, which aimed to give fintechs an alternative route to a banking licence without having to go through the state, was denied by the courts as the judge sided with the plaintiff and the superintendent of the New York State Department of Financial Services, Linda Lacewell.

The federal judge ruled in favour of Lacewell’s arguments on the grounds of the National Bank Act’s ‘business of banking’ clause, which “unambiguously requires that […] only depository institutions are eligible to receive national bank charters from [the] OCC”.

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