Donald Riegle: “Let me state for the record that some Senators have expressed concern about the implications of the applicable State law…”

“Let me state for the record that some Senators have expressed concern about the implications of the applicable State law that would govern the operations of branches of out-of-state national banks in their States once this bill is enacted, as you have just mentioned. Under the reported bill, the States do not lose any authority that they already have over national banks. The bill also avoids having two classes of national banks resulting, interstate and intrastate, with each type of bank subject to different laws. I would just add that we worked hard in the committee to preserve the contours of the dual banking system in crafting this legislation and have not tried to alter the existing balance of power between the Federal and the State levels. The reported bill endeavors to maintain the status quo regarding a State's ability to regulate the activities of national banks operating in that State. However, I remain open to hearing from Senators regarding their suggestions to further fine tune the language that has been drafted in committee on this point. I would of course endeavor to consider their concerns in conference.”