While Congress gets ready to talk financial regulation reform, the regulators continue to push and shove behind the scenes. There are so many regulators and none of them want to lose any power in the deal.
The Supreme Court ruling yesterday handed the states a victory in this ongoing battle. It said a state attorney general can demand information from federally regulated banks. This may seem like a small victory but it is vindication for state regulators. National regulators say it's a big mistake.
Let's start with the national banks and their national regulators. They hate this idea. They have enjoyed telling states that as national banks, they do not have to abide by every little consumer protection law in every state they operate in. Expect to hear them arguing that complying with state laws will just make everything more expensive for everyone.
States will undoubtedly snap that state regulators are better at enforcing consumer protections and by the way you national guys didn't do such a great job in the last few years. And the battle will continue.