Lobbyists, Small Banks Attack Plan For Markets

[flashl]

Source: WSJ

WASHINGTON -- Small banks, state officials and others began an assault on the Bush administration's sweeping plan to overhaul the nation's financial regulatory system.

...

"It reads like amateur hour and it's because none of those guys ever worked in a regulated, chartered bank," said Camden Fine, president and chief executive of the Independent Community Bankers of America, a Washington trade group representing small banks, referring to the authors at Treasury. "A bunch of guys from Wall Street decided this was going to be their proposal."

...

Large financial-services companies have had a seat at the table as Treasury crafted its plan, and many welcomed some of its broad principles, such as streamlining regulation. But groups such as Mr. Fine's community bankers, representing the smaller end of the spectrum, hold considerable sway in Washington. With members in nearly every congressional district, they are vital to the success of the plan.

...

Other groups expressing early opposition include credit unions, which are concerned that a single depository regulator would force them into a structure dominated by traditional banks. Smaller banks fret that creation of a single banking regulator will favor the desires of their bigger competitors. State prosecutors complain that a proposal to create a national insurance regulator would substitute their vigilance with weak federal oversight.

WSJ

Read more: http://online.wsj.com/article/SB120697114969676991.html?mod=hpp_us_whats_news

[PSPS]

1. "weak federal oversight"

State prosecutors complain that a proposal to create a national insurance regulator would substitute their vigilance with weak federal oversight.

I guess this guy didn't get the memo. The whole idea is to weaken oversight. Bush and his cronies like things that way.

[flashl]

2. And, we saw what happen to this guy after his editorial

Predatory Lenders' Partner in Crime
Feb. 13, 2008

The writer is governor of New York.
How the Bush Administration Stopped the States From Stepping In to Help Consumers

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

...

Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.

Washington Post

[jwirr]

3. I hope that more people - businesses wake up to what *ss is trying

to do. The system needs to go back to regulated banks and lending agencies even if it means that I do not have any credit. We need to block anything he tries until his term is over.

[ShockediSay]

4. Lobby Lawyers

can you trust them?

to do what?