Breaking Developments in National Bank Act Preemption

Jan 22, 2026

Guest

Ronald Vaske

Guest

Join Professor Arthur Wilmarth, a distinguished scholar on banking regulation, along with John Culhane, Jr., Joseph Schuster, and Ronald Vaske, who specialize in consumer financial services. They dive into landmark court cases reshaping National Bank Act preemption, arguing over the implications of the Cantero and Conti decisions. Discussions cover the nuanced analyses required under Dodd-Frank, the growing role of state law, and the strategic adjustments banks must make to navigate these changes. Expect insights into upcoming litigation and the future of compliance in banking!

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INSIGHT

Supreme Court Rejected Blanket Preemption

Cantero instructs courts to apply a case-by-case "prevents or significantly interferes" test rather than blanket preemption.
The Supreme Court rejected field preemption and requires a nuanced comparative analysis with prior cases.

INSIGHT

First Circuit Embraces Narrower Preemption

The First Circuit in Conti held Rhode Island's escrow-interest law is not preempted under Cantero's framework.
The court reasoned state consumer-protection laws often don't significantly interfere with national bank operations.

ADVICE

Begin Immediate Compliance Reviews

Start reviewing products, disclosures, and processes now to identify state laws that may apply.
Update compliance programs and documents proactively rather than waiting for more rulings.

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Our podcast show this week consists of a webinar we produced on November 10, 2025, titled, "Breaking Developments in National Bank Act Preemption." Join our panel of top legal experts as they break down how landmark court rulings are changing the rules for national banks, examine the growing application of state law, and discuss what these changes mean for compliance, risk, and the future of consumer financial services.

Meet the Panelists:

· Alan Kaplinsky (Host & Moderator): Senior Counsel and former Practice Group Leader and Founder of the Consumer Financial Services Group at Ballard Spahr

· Professor Arthur Wilmarth: Professor Emeritus at George Washington University Law School, widely recognized for his scholarship on National Bank Act preemption.

· John Culhane, Jr.: Senior Counsel of the Consumer Financial Services Group at Ballard Spahr specializing in national bank compliance and regulatory strategy.

· Ronald Vaske: Senior Counsel of the Consumer Financial Services Group at Ballard Spahr advising financial institutions on regulatory and compliance matters.

· Joseph Schuster: Partner of the Consumer Financial Services Group at Ballard Spahr guiding national banks on state law adaptation and implementation.

Key Points Covered:

· Landmark Court Decisions: Recent cases like Cantero in the Supreme Court and Conti in the First Circuit Court of Appeals have moved National Bank Act preemption away from blanket coverage, requiring courts to carefully assess each state law's impact on national banks.

· Dodd-Frank's Transformative Impact: The Dodd-Frank Act codified the legal standard established by the Supreme Court in the Barnett Bank Case that state laws are only preempted if they "prevent or significantly interfere" with national bank authority, and curtailed the OCC's sweeping preemption powers.

· Erosion of Uniform Federal Standards: National banks now face the reality of complying with an increasing patchwork of state laws, which challenges the traditional advantage of a federal charter.

· Compliance Strategies in Practice: Banks are proactively reviewing and updating their products, disclosures, and processes to ensure compliance with varying state requirements using robust legislative tracking methods.

· What's Next - Regulatory and Litigation Outlook: The panel anticipates ongoing legal and regulatory developments and urges institutions to prepare for further changes by starting comprehensive compliance reviews now.

This episode delivers vital updates and practical guidance on the evolving landscape of national bank preemption, making it essential listening for anyone involved in consumer financial services, banking compliance, or regulatory strategy.

Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.