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October 16, 2009
Bill Shields Most Banks From Review
By STEPHEN LABATON
http://www.nytimes.com/2009/10/16/bu...1&ref=business
WASHINGTON — Bowing to political pressure from community bankers, the House Financial Services Committee approved an exemption on Thursday for more than 98 percent of the nation’s banks from oversight by a new agency created to protect consumers from abusive or deceptive credit cards, mortgages and other loans.
The carve-out in legislation overhauling the regulatory system would prevent the new consumer financial protection agency from conducting annual examinations of the lending practices at more than 8,000 of the nation’s 8,200 banks, leaving only the largest banks and other lenders subject to the agency’s examiners.
The carve-out in legislation overhauling the regulatory system would prevent the new consumer financial protection agency from conducting annual examinations of the lending practices at more than 8,000 of the nation’s 8,200 banks, leaving only the largest banks and other lenders subject to the agency’s examiners.
The amendment was warmly greeted by lobbyists for the smaller banks,
“The Miller-Moore amendment addresses some of our key concerns,” said Camden R. Fine, president of the Independent Community Bankers of America, which represents about 5,000 financial institutions.
But the American Bankers Association said it was not enough.
“We continue to have our fundamental concern that the bill will create a new agency with incredibly broad powers that will be in constant conflict” with other regulators, said Edward L. Yingling, president of the association.
“The Miller-Moore amendment addresses some of our key concerns,” said Camden R. Fine, president of the Independent Community Bankers of America, which represents about 5,000 financial institutions.
But the American Bankers Association said it was not enough.
“We continue to have our fundamental concern that the bill will create a new agency with incredibly broad powers that will be in constant conflict” with other regulators, said Edward L. Yingling, president of the association.
Robert G. Pickel, the chief executive of the International Swaps and Derivatives Association, a trade group, said the legislation would “force people to trade a certain way, which ultimately means parties would have less flexibility to effectively manage their risks.”