Kay Bailey Hutchison: “Unfortunately, if the Senate divides the oversight of the [bank holding companies] between the banking regulators, it…”

“Unfortunately, if the Senate divides the oversight of the [bank holding companies] between the banking regulators, it will multiply and complicate this oversight significantly. This is hardly an improvement. And, limiting the regional Reserve Banks' source of industry information gained through their contact with all institutions and bank regulators will greatly compromise its ability to understand industry trends and deal with future crises. This is a mistake and I hope you will consider it carefully in your deliberations. That is signed by Thomas Hoenig, president of the Federal Reserve Bank of Kansas City. In addition, the President of the Dallas Federal Reserve Bank, Richard Fisher, came to my office to make this point most affirmatively, that he wanted to make sure he still had the supervisory power and the ability to learn from the State banks, the community banks in the whole region where the Dallas Federal Reserve Bank sits. Last, I wish to read an excerpt from the alert of the American Bankers Association: As you know, S. 3217, the regulatory restructuring bill, contains language that would move oversight of state banks that are members of the Federal Reserve and their holding companies to the [FDIC].”