Banks Usurp State Power to Protect Consumers

In a little-noticed Wall Street Journal article, we learn that the Supreme Court is helping the commercial banking industry get out of having to follow state consumer protection laws. This comes after the passage of both the bankruptcy bill, and legislation that preempts state consumer privacy laws - both measures pushed by the banking industry.

Here is the Wall Street Journal excerpt:

"The 8-0 ruling, written by Justice Ruth Bader Ginsburg, clarifies that banking corporations organized as national banks are shielded from many lawsuits in state courts even if they do business in a particular state. Under the decision, lawsuits against national banks will be moved instead into federal courts, where corporations prefer to litigate."

As I've said before - it seems "states rights" and "local control" only apply in our political debate when those principles benefit Big Money. And they are wholly eliminated when they might threaten the powers that be.

COMMENTS: Go to Sirota's Working Assets site to comment on this entry