From my experience, I can also say that Section 105A is extremely difficult to enforce. Prohibiting solicitation of trust business across geographic boundaries in the era of the Internet is virtually impossible. We have spoken with a probate judge about repealing this provision. He recommends instead that we eliminate the preempted provisions and retain the balance of the statute. Supervision of trust companies on an interstate basis provides problems unique from banks.
Some states have little to no experience in the regulation of trust companies.
Additionally, this is a rapidly growing area of assets and our past experience indicates that it is an area ripe for fraud. My fellow state regulators and I are continuing to evaluate the attributes of an effective, multi-state regulatory system for trust companies. Powers - The Powers subcommittee extensively reviewed the authority granted to national banks, savings institutions and other state institutions. This wildcard provision would allow a Texas bank, upon notice to the Banking Commissioner, to exercise any power authorized to another financial institution in the United States that is permitted under applicable federal law. The Banking Commissioner could veto the activity if the activity would jeopardize the safety and soundness of the bank.