Supreme Court Rules on Banking Law

NATIONAL banks in midsized and large cities may sell annuities, the Supreme Court ruled unanimously yesterday.

The justices reversed a lower-court decision that had called annuities a form of insurance, which could not be sold by banks in cities of more than 5,000 residents. The decision agreed with the government's and nationally chartered banks' interpretation of a murky federal law.

The lower court ruling had been appealed by a brokerage subsidiary of NationsBank and by the federal comptroller of the currency.

``We respect as reasonable the comptroller's conclusion that brokerage of annuities is an `incidental power necessary to carry on the business of banking,' '' Justice Ruth Bader Ginsburg wrote.

Banks sold about $12 billion worth of annuities in 1992, representing one-fifth of all annuities sold nationwide.

NationsBanc Securities - the brokerage subsidiary of NationsBank of North Carolina, based in Charlotte - got approval from the federal government in 1990 to sell annuities to its customers.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK