Feds Back Banks’ Appeal of State’s Financial Privacy Law

The Bush administration stepped into a lawsuit challenging California’s landmark financial privacy law Wednesday, urging a federal judge to side with banks that want to overturn restrictions on how they can share customer information.

The new state law requires financial institutions to get permission from customers before giving nonaffiliated companies customers’ financial information such as their bank balance or spending habits. Read all about it. [requires registration]
Here’s an earlier story.