Sen. Bob Graham: “I would like to bring to the attention of the Chairman the concern of a number of my colleagues with the section of the…”

“I would like to bring to the attention of the Chairman the concern of a number of my colleagues with the section of the bill dealing with applicable State law. My concern is that the section will result in a significant loss of authority for the States. Currently through their banking laws and their bank holding company statutes, States are able to require all banks to conform with a wide variety of State laws. States have applied laws in the areas of consumer protection, community reinvestment, and fair lending as well as a number of reporting and notification requirements to these institutions. We need to look at the financial system from the eyes of the users of the services, the consumers. We need to have uniformity and predictability. At the same time we need to have standards that best achieve the needs of the community. We must recognize the diversity of the community needs across the Nation and provide laws that allow communities to reflect those different needs. I am concerned as are a number of my colleagues that the current language of the bill does not give communities this needed flexibility. I am also concerned the section of the bill dealing with applicable law may result in many consumers not receiving the full protection of State law in the areas of consumer protection and fair lending practices. The language also reduces the authority of States to guarantee adequate community reinvestment.”