Mitsubishi UFJ Financial Group on Wednesday sued New York’s banking regulator to stop its effort to continue to supervise Japan’s largest lender after it switched its state branches to federal oversight this week, according to court filings.
Reuters reports that the New York Department of Financial Services (NYDFS) has often taken enforcement action against lenders under its purview. MUFG’s subsidiary, the Bank of Tokyo-Mitsubishi, agreed to pay $565 million in penalties in 2013 and 2014 for alleged compliance failures at its New York branches.
In a November 7th letter, the U.S. Office of the Comptroller of the Currency (OCC) said it had given Bank of Tokyo-Mitsubishi UFJ the greenlight to convert branches in four states into federally regulated ones.
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