Federal Judge Throws Out NYDFS Lawsuit Challenging OCC Fintech Charter

Posted December 13, 2017

On Dec. 12, 2017, Federal Judge Naomi Reice Buchwald for the Southern District Court of New York dismissed a lawsuit filed by the New York State Department of Financial Services (NYDFS) which sought to block fintechs from being able to acquire special purpose national bank charters.
In her ruling, Judge Buchwald cited her reason for the dismissal as the court’s lack of “subject-matter jurisdiction” under the requirements of the ripeness doctrine, which states that federal courts must “limit their jurisdiction to causes of action that ‘present a real, substantial controversy, not a mere hypothetical question.’” She also suggested that the OCC give prior notice to the NYDFS before granting any charters to fintech companies, considering the New York regulator continues to oppose the concept.
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