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Bank, credit unions regulation reduction OK'd
By Jesse J. Holland, Associated Press Writer
Friday, March 19, 2004 | No comments posted.
WASHINGTON - Legislation to reduce regulations on banks and credit unions won easy approval Thursday from House members who said the changes could help more Americans get financial services they need.
The House, on a 392-25 vote, passed legislation that would make it easier for banks to open branches in other states and to complete mergers with less paperwork. The measure would make it harder for commercial or retail companies to branch their bank-like industrial loan companies across state lines.
Commercial companies are not allowed to own banks but they can own industrial loan companies, which offer many banklike services. Under the legislation passed by the House, only companies that have more than 85 percent of their business in financial services can open up branches of their industrial loan company in other states.
The bill also would allow credit unions to cash checks and wire money from nonmembers who are eligible to become members, which would give them an expanded customer base.
"A vote for this bill is a vote to allow banks, thrifts and credit unions to channel their resources away from complying with unneeded regulatory mandates and toward making loans and other financial services products to their consumers and small business customers," said Rep. Michael Oxley, R-Ohio, the House Financial Services Committee chairman.
The bill now goes to the Senate.
"The financial services industry spends a great deal of time, a great deal of money dealing with outdated and ineffective regulation," said Rep. Spencer Bachus, R-Ala. "That's money that could be loaned to consumers and industries to buy new cars, new homes, new factories and new industries."
The House voted down an effort by Rep. Anthony Weiner, D-N.Y., to force banks to stop charging fees to people who deposit bad checks. People have no idea when someone gives them a bad check, and shouldn't be punished because of someone else's poor financial management, he said. "Why should the victim pay?" Weiner said.
But Bachus said making the banks eat the cost of bad checks would only pass on the cost to all of a bank's customers, instead of just one. "It's unfair. Customers who do not deposit bad checks or high-risk checks subsidize those who do on the cost of handling those habits," Bachus said.
---
On the Net:
For bill text: http://thomas.loc.gov
The House, on a 392-25 vote, passed legislation that would make it easier for banks to open branches in other states and to complete mergers with less paperwork. The measure would make it harder for commercial or retail companies to branch their bank-like industrial loan companies across state lines.
Commercial companies are not allowed to own banks but they can own industrial loan companies, which offer many banklike services. Under the legislation passed by the House, only companies that have more than 85 percent of their business in financial services can open up branches of their industrial loan company in other states.
The bill also would allow credit unions to cash checks and wire money from nonmembers who are eligible to become members, which would give them an expanded customer base.
"A vote for this bill is a vote to allow banks, thrifts and credit unions to channel their resources away from complying with unneeded regulatory mandates and toward making loans and other financial services products to their consumers and small business customers," said Rep. Michael Oxley, R-Ohio, the House Financial Services Committee chairman.
The bill now goes to the Senate.
"The financial services industry spends a great deal of time, a great deal of money dealing with outdated and ineffective regulation," said Rep. Spencer Bachus, R-Ala. "That's money that could be loaned to consumers and industries to buy new cars, new homes, new factories and new industries."
The House voted down an effort by Rep. Anthony Weiner, D-N.Y., to force banks to stop charging fees to people who deposit bad checks. People have no idea when someone gives them a bad check, and shouldn't be punished because of someone else's poor financial management, he said. "Why should the victim pay?" Weiner said.
But Bachus said making the banks eat the cost of bad checks would only pass on the cost to all of a bank's customers, instead of just one. "It's unfair. Customers who do not deposit bad checks or high-risk checks subsidize those who do on the cost of handling those habits," Bachus said.
---
On the Net:
For bill text: http://thomas.loc.gov
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