Banking Superintendent Sends Letter to Sens. Schumer and Gillibrand on State Supervision in Financial Regulatory Reform
May 7, 2010
New York, N.Y.: Richard H. Neiman, Superintendent of Banks for New York State, sent a letter today to Senator Charles E. Schumer and Senator Kirsten E. Gillibrand, urging their consideration on two financial regulatory reform issues that would significantly affect New York’s ability to regulate banks and protect consumers.
First is the section in the Restoring American Financial Stability Act which allows states to make consumer protection laws that go beyond federal regulation standards. In the letter, Superintendent Neiman states that this section, which removes the Office of the Comptroller of Currency’s (OCC) unfettered discretion to override state consumer protection laws, is a key state victory that is being targeted for removal by big banks.
The second area of concern is a provision in the bill that would shift state bank supervision from the Federal Reserve, unintentionally incentivizing New York’s largest state-supervised institutions to switch to a federal charter. Such a switch by the State’s largest institutions would severely impact New York’s smaller community banks, which would face increasing assessments as a result.
A copy of the letter is available at http://www.dfs.ny.gov/about/press/pr100507a.pdf.
The New 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.