Mortgage Lending: 6.2.2.3 State Law Claims That Parallel Federal Requirements Are Not Preempted Under the Barnett Bank Standard
State laws that parallel federal requirements do not conflict with those requirements and thus are not preempted under the Barnett Bank standard. In First National Bank in St. Louis v. Missouri,60 the Supreme Court upheld a state law that prohibited branch banks. At the time, federal law also did not authorize branch banks. There was no question that this law severely limited banks’ powers, but federal law at the time also did not authorize branch banks.