“Thus, unless the Federal Reserve Banks have the discretion to deny or reject master account applications, state chartering laws will be the only layer of insulation for the US financial system,” the judges wrote. “And under those circumstances, a “race to the bottom” among states and politicians to attract business by easing the burden of state chartering through lax legislation, giving the least regulated institutions ready access to central bank balances and Federal Reserve services can easily become apparent. .”