Wall Street fought the law — and the law lost.
A federal judge Monday ruled that an attempt by New York City Mayor Bill de Blasio to regulate banks through the Responsible Banking Act was unconstitutional.
De Blasio wanted to push lenders to release confidential loan and foreclosure data, especially in low-income areas, in order to crack down on alleged practices like red-lining.
But the RBA, which created a City Hall-controlled, eight-person panel with the power to yank public monies from any bank that didn’t live up to new standards, essentially gave the Big Apple powers that are reserved for federal and state regulators like the Securities and Exchange Commission and the New York Department of Financial Services, lawyers for the New York Bankers Association, which fought the law, told the judge.
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