Statement from New York Superintendent of Banks and Oversight Panel Member Richard H. Neiman
September 10, 2009
New York, N.Y.: “At today's Congressional Oversight Panel hearing with Treasury Secretary Geithner, it was reassuring to hear the Secretary express concern about concentrating power in one supreme financial regulatory agency. State bank regulators like myself agree that consumers, and our entire financial system, are better off when our trust is placed in multiple oversight agencies rather than in one monolith. Like a panel of judges at the Olympics, many watchful eyes are needed to achieve the best result.”
“Creating a giant regulator as a means of improving financial regulation relies on the faulty assumption that regulatory consolidation leads to a stronger and safer banking system. The opposite is true. Such a proposal would increase the fragility of the system by increasing industry consolidation, eliminating needed checks and balances, and subordinating the interests of the consumer to the business goals of a handful of mega-banks.”
TheNew York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.