October Term 2006 · Docket 05-1342

Can states regulate a national bank's mortgage subsidiary?

the sides that brought the case argue state law applies to the subsidiary. the opposing sides claim federal law preempts state regulation.

Official caption
Watters v. Wachovia Bank, N. A.
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Official Transcript

Verified source milestones

  1. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Mr. Blanchard argued the dual banking system exemplifies cooperative federalism.

    Mr. Srinivasan asserted the issue involves conflict preemption, not field preemption.

    Mr. Long stated that undisputed principles help focus the legal issue before the Court.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

This case tests the scope of federal preemption over state banking laws.

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How the case got here

The Supreme Court heard oral argument in this case on November 29, 2006.

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What each side wants

the sides that brought the case want state law to apply to the mortgage subsidiary.

the opposing sides want federal law to preempt state regulation of the subsidiary.

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What each side says

the sides that brought the case argue the dual banking system supports state regulatory authority.

the opposing sides argue conflict preemption bars state regulation of the subsidiary.

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What the justices asked

Why did the bank create a subsidiary instead of operating directly?

Does the parent bank need visibility into the subsidiary's activities to protect itself from liability?

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Why it matters

The outcome defines the boundary between state and federal banking regulation. It determines whether states can inspect and limit mortgage operations of national bank subsidiaries. This affects consumer protection and the structure of the national banking system.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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