The Federal Deposit Insurance Corp lawyers have stated in a filing to U.S. District Judge Gladys Kessler that, “[T]he banks, not federal banking regulators, terminated those business relationships”.
U.S. banking regulators have asked a federal judge to dismiss a lawsuit that accuses the regulators of ‘a concerted campaign’ to drive payday lenders out of business by pressuring banks to terminate relationships with them. In court documents filed Monday, the Federal Reserve, Comptroller of the Currency and the Federal Deposit Insurance Corp. argued any decision to end business relationships with payday lenders was made by the banks themselves.
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