Massachusetts banks have prevailed in a federal lawsuit they brought last year challenging restrictions on insurance sales through bank branches.
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The U.S. District Court in Boston found in favor of the banks in a declaratory judgment Wednesday, removing several restrictions on the manner in which nationally chartered banks can sell insurance in the state.
State-chartered banks are expected to ask state regulators to use a Massachusetts law and allow them the same rights as nationally chartered banks to sell insurance through branches. The federal suit was filed last year by the Massachusetts Bankers Association and seven member banks, some state and some nationally chartered.
