The city's lawyers had argued the law was simply intended to promote "transparency," but Failla agreed with the plaintiffs that it was an attempt to "advance policy objectives" by coercing banks' behavior, which infringed upon the federal and state governments' regulatory powers.
In a statement, NYBA President Michael Smith said: "This is an important decision for the banking industry with nationwide ramifications. The banks in New York will continue to be supervised by state and federal regulators, and will continue to reinvest in the communities in which they operate."
The case is The New York Bankers Association v. The City of New York, U.S. District Court, Southern District of New York, No. 15-cv-4001.