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The Dual State - Federal Regulation Of Financial Institutions - A Policy Proposal, Tamar Frankel
The Dual State - Federal Regulation Of Financial Institutions - A Policy Proposal, Tamar Frankel
Faculty Scholarship
In 1983 South Dakota passed an Act permitting its chartered banks to sell and underwrite insurance.1 The issue that I address is whether states should have the power to pass such a law. I am not concerned here with interpretation of positive law but with public policy implications.
The issue is a matter of congressional policy. Like most financial intermediaries banks are regulated by both state and federal laws,2 but it is clear that the federal government has the power to preempt state laws that regulate banks. Therefore, whether South Dakota can pass the statute is not a …