NCLC put out a paper that makes the argument that many of the subprime perpetrators escape state laws because national banks were recently put outside of state jurisdiction.

A quote from NCLC:

"It rebuts the claim that reversing preemption will alter 150 years of banking tradition; gives examples of how preemption has hurt consumers; and responds to industry arguments about the nightmare that reversing preemption will cause

It includes new charts showing that in 2006, 32% of subprime loans, 40% of alt-A loans, and 51% of the toxic payment-option and option ARM loans – a total of $700 billion in 2006 alone – were made by national banks, federal thrifts, or their subsidiaries who were immune from state laws."

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