NEW YORK -- A federal judge Wednesday blocked Attorney General Eliot Spitzer from investigating national banks' lending practices, saying the probe is prohibited by federal law.
U.S. District Judge Sydney H. Stein ruled in favor of the Clearing House Association and the Office of the Comptroller of the Currency, an arm of the Treasury Department that oversees the banking system.
Spitzer had said his probe to see if minorities are being charged higher interest rates on home mortgage loans had already shown a "significant racial disparity that could violate state civil rights laws."
The judge said Spitzer cannot enforce state fair lending laws against national banks or their operating subsidiaries by issuing subpoenas and bringing enforcement actions against them.
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