Cantero v. Bank of America, N.A. (22-529)
argument 22-529Cantero v. Bank of America, N.A.
Supreme Court of the United States
1h 47m
8 speakers
8 chapters
transcribed 9 days ago
official recording ↗
Transcript
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Transcript generated automatically by AI and may contain errors.
What does Section 25B’s “prevents or significantly interferes” standard mean for national banks?
We'll hear argument next in case twenty two five twenty nine, Cantero versus Bank of
America. Mr Taylor. Mr Chief Justice, and may it please the Court. Section twenty five B preempts a state consumer financial law only if, as relevant here, it prevents or significantly interferes with the exercise of a national bank's powers. Bank of America argues, and the Second Circuit held, that this statute preempts any law that controls or otherwise hinders the exercise of a national bank's powers, regardless of whether the law has any significant effect on such powers. This test conflicts with the statute for four reasons. First, Section twenty-five B's definition of state consumer financial law is incompatible with a control test because it would require that every such law be preempted, nullifying the statute and erecting the very field preemption regime that the statute forbids.
Bank of America's only retort is to concede that state fair lending laws aren't categorically preempted, a concession it doesn't explain and that disproves its own test. Second, the control test ignores Section twenty five B's express codification of Barnet banks prevents or significantly interferes with standard, and in particular the word significantly, which Bank of America reads out of the statute. Third, a control test can't be squared with Section twenty-five B's provisions for OCC preemption determinations. which must assess the impact of a state law and be based on substantial evidence. These requirements would make no sense if a control test were the law. Finally, and perhaps most fundamentally, adopting a control test would require reading virtually all of Section 25B to have no real world effect.
With no plausible textual argument, Bank of America turns to policy, claiming that its test is needed to avoid mayhem, but Congress disagreed, and Section twenty five B has a solution to this concern. The OCC can make the preemption determinations contemplated by the statute, that it has thus far failed to respect the statute's commands grants no license to this court to do the same. I welcome the Court's questions.
I'd be interested in you uh uh giving us uh your explanation as to how Barnett Bank uh gives us guidance as to how to interpret, uh prevents or significantly interferes. Sure,
Justice Thomas. So Barnett Bank uses the f the the s prevents or significantly interferes with standard as a kind of distillation of the rule that emerges from this court's cases. Now of course the conflict that was issue in Barnet Bank was a stark conflict. It involved a state statute that said Banks may not do X and a federal statute that said national banks may do X, and this Court was able to resolve that as a clear conflict. But it didn't give much guidance itself in terms of what significant interference with means. But it did articulate that as the standard that emerges from this court's cases. And the first case that it cited was this court's decision in Anderson, and Anderson involved a Kentucky a sheet law.
And the Court in that case there was a preemption challenge that was brought to that statute uh by the national bank, and the court in that case said That's not a discriminatory statute. It was the first question the court asked. It doesn't conflict with any statutory text. And so we examine the law's practical effect. And in examining the law's practical effect, it distinguished a prior decision from this court that reached the opposite outcome. And the only way to explain that pair of cases is that the court examined the practical effect. And so I think the one thing that we know of the prevents or significantly interferes with standard and what it means. is that it requires an examination at a minimum.
of the practical effect of the statute. And That's clear from the ordinary meaning of the phrase and it's confirmed by the surrounding text in section twenty five B, including the provision that requires that the OCC examine the law's impact based on substantial evidence and what is periodically review.
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Chapters
8 chapters
1
What does Section 25B’s “prevents or significantly interferes” standard mean for national banks?
0:00–15:04
2
How do courts determine the practical effect of a state law on a national bank’s powers?
15:04–28:01
3
Why is the Franklin National Bank case pivotal for interpreting the preemption standard?
28:01–41:02
4
What role should the OCC play in assessing state‑law interference with banking powers?
41:02–55:04
5
Is the control test or the practical‑effect test the correct approach to preemption?
55:04–1:08:57
6
How is “significant interference” measured—quantitatively or qualitatively?
1:08:57–1:21:34
7
What evidentiary burden must a bank meet to prove significant interference?
1:21:34–1:34:43
8
Why is uniform national banking regulation important for consumer protection?
1:34:43–1:47:45