Questions on the case of WELLS FARGO - Essay Example

In the California financial code, there is a provision that ensures parity where the commissioner is allowed to issue commands in regulating a California chattered bank to conduct any activity that is allowed for a national chattered bank (FindLaw, 2011). In the determination of whether a federal statute preempts a state law, there is the general presumption that the supremacy clause of the constitution to the United States federal statutes does not preempt the historic powers of the state police.

This can only happen if the preemption has the clarity of the United States congress purpose. The general presumption in opposition to preemption, we narrowly interpret the accurate language of the national law or regulation to determine whether a meticulous state law declaration is preempted ((White Paper 2010, 11). State banks are authorized to conduct activities that are not allowed for national banks. This shows that even if Wells Fargo Bank was a Californian chartered bank, it could have taken its case to the court of appeal.

If the national chattered bank was able to do that, the California chattered bank was able to do the same. Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank (FRB) conduct examinations in the bank alternatively. The alternation of examination programs, which is either, in a twelve or eighteen month cycle allows the bank to have privacy by keeping intruders off the bank (White Paper 2010, 1). Had 16 F.R. 1904 not included the statement that “the regulation is a clarification of existing law," the case could have taken a different turn because it could have favored the plaintiff.

In this case, Smith did not get any favor for the section stipulated that the case was clarified (FindLaw, 2011). Smith was not lucky because the disclosure he accused the bank to have been preempted in the same ruling. In that regard, the case of advertising being misleading was not favored by the court. If the section was not clarifies, smith could have been favored because the advertisement could have been claimed as misleading. On the other hand, smith did not have any evidence because he did not provide any advert which had affirmative misinterpretation.

Smith’s allegations could not have been overruled if he had the advert which was misinterpreted by customers as he claimed (White Paper 2010, 2). The police powers would still have protected the consumer because they are supposed to protect the regulation of consumers and the bank or financial institution. The plaintiff would have been in a very happy mood but, his expectations were turned down because of the insertion of that phrase about clarification. The ruling would have affected the bank in hard manner because colossal amount of money could have been paid as fine due to the ignorance of rules in the bank.

The plaintiff could have received benefits but, now he was forced to bear with the circumstances (Portfolio Media, Inc., 2010). Truth in Savings Act (12 U.S.C. 4301 et. seq.), it is also known as TISA which an acronym. It is a federal law in the United States which was passed on December 19th, 1991. The act was a part of the Federal Deposit Insurance Corporation Improvement Act of 1991. It establishes the uniformity of the terms that regard interests and fees which are paid in the process of opening accounts and passing information (Cfpb, 2011).

The United States congress was behind the passing of the law as it noted that it was determined to enhance