Fed plan would shrink states' powers

[flashl]

Some state officials see the federal government’s plan to overhaul the country’s financial regulatory systems as an intrusion on their powers to enforce state laws, and state regulators warn that it could carry grave consequences for consumers.

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“There’s no room for state law,” said John Ryan, the executive vice president of the Conference of State Bank Supervisors (CSBS), which represents state bank regulators. “This has been Wall Street’s and a handful of big banks’ dream to get away from the states.”

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{P}roposals (PDF) by the U.S. Department of Treasury that include taking over systems long-controlled by states were aimed at modernizing the financial oversight system, now regulated by a combination of state and federal agencies.

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The federal government is also trying to assert itself in the insurance sector, where it claims the patchwork of state laws makes it tougher for U.S. firms to compete abroad and for foreign firms to enter U.S. markets. State insurance commissions have powers such as setting rates, monitoring claims practices and reviewing policy forms.

Stateline

As you contemplate the above article remember this Feb. 14, 2008 article? Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers

[Eric J in MN]

1. Making it easier for companies to ripoff customers....

...by reducing the number of regulations and regulators is "modernizing."

At least from a Republican point-of-view.