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A federal judge in New York ruled the Office of the Comptroller of the Currency (OCC) does not have the authority to issue special bank charters to fintechs. So reports CNBC.
The charters previously allowed start-ups to lend money and offer payment products without accepting FDIC insurance or complying with state regulations. A spokesman from the OCC said the agency disagrees with the court’s interpretation of the National Bank Act and is planning an appeal.