The McFadden Act is a

United States federal law The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the nation's Constitution, which prescribes the foundation of the federal government of the United States, as well as ...

, named after

Louis Thomas McFadden Louis Thomas McFadden (July 25, 1876 – October 1, 1936) was a Republican member of the United States House of Representatives from Pennsylvania, serving from 1915 to 1935. A banker by trade, he was the chief sponsor of the 1927 McFadden Act ...

, member of the

United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they ...

and Chairman of the

United States House Committee on Banking and Currency United may refer to: Places * United, Pennsylvania, an unincorporated community * United, West Virginia, an unincorporated community Arts and entertainment Films * ''United'' (2003 film), a Norwegian film * ''United'' (2011 film), a BBC Two fi ...

, enacted in 1927 from recommendations made by former

Comptroller of the Currency The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all nationa ...

Henry May Dawes. The Act sought to give national banks competitive equality with state-chartered banks by letting national banks

branch A branch, sometimes called a ramus in botany, is a woody structural member connected to the central trunk of a tree (or sometimes a shrub). Large branches are known as boughs and small branches are known as twigs. The term ''twig'' usually ...

to the extent permitted by state law. The McFadden Act specifically prohibited interstate branching by allowing each national bank to branch only within the state in which it is situated. Although the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994Lemonade or Lemon?
Riegel-Neal Act of 1994 repealed this provision of the McFadden Act, it specified that state law continues to control intrastate branching, or branching within a state's borders, for both state and national banks. Under a grandfather clause, three major banks were allowed to continue conducting interstate banking ( Northwestern National Bank, First Bank Stock Corporation, and First Western Bank).

References

External links

Information from the Office of the Comptroller of the CurrencyPublic Law 639, 69th Congress, H.R. 2: an Act to Further Amend the National Banking Laws and the Federal Reserve Act. [McFadden Act]
{{Bank regulation in the United States 1927 in law United States federal banking legislation

See also

References

External links