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State Attorneys General Are the New Bank Regulators

American Banker

Jeremiah S. Buckley

Spurred by the financial crisis and its impact on their constituents, state attorneys general appear to be carving out a new role as de facto bank regulators. This trend, an unexpected fall out of the financial crisis and the passage of Dodd-Frank, may not as yet be fully appreciated. However, it seems increasingly clear that state AGs will be important arbiters of the way banks do business on a going forward basis.

Anyone who doubts this is true need only consider how state AGs are already engaged in defining bank behavior.

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