Coalition of State Attorneys General Urges Rejection of Bank Charters for High-Cost Lenders
A coalition of 20 state attorneys general, led by Illinois Attorney General Kwame Raoul, has called on federal banking regulators to reject bank charter applications from high-cost lenders. In a letter to the Federal Deposit Insurance Corp., Federal Reserve, and Comptroller of the Currency, the attorneys general argue that granting these charters would allow lenders to bypass state usury laws, leading to increased high-cost lending and weakened state enforcement authority. The coalition highlights concerns over safety and soundness, citing high loan charge-off rates and questioning the compatibility of these lenders' business models with federal banking standards. 
