â The U.S. Supreme Court has agreed to hear arguments in a case involving federal preemption of state enforcement powers. The case, Watters v. Wachovia, revolves around Michigan’s 2003 citation of Wachovia’s mortgage unit for violations of the state’s licensing law. Wachovia sued, arguing that federal preemption extended to state-chartered operating units that are “indistinguishable” from their national banks. A lower court sided with Wachovia, handing national banks- and its r regulator, the Office of…