On Oct. 15, the U.S. House Financial Services Committee approved an amendment to reduce the proposed federal Consumer Financial Protection Agency's (CFPA) examination powers over small banks and credit unions by voice vote. While the Miller-Moore amendment reduces examination powers, the agency would still have full power over 115 banks and 80 credit unions. The CFPA, which will have authority over financial products like home loans and payday loans, continues to garner opposition from financial firms. The legislation creating the new agency will continue the markup process as lawmakers debate the balance between federal and state powers. U.S. Reps. Mel Watt (D-N.C.) and Dennis Moore (D-Kan.) have crafted another amendment that would require national banks to comply with state laws except when state law is considered to have a "discriminatory" impact on national banks and when it prevents or interferes with national banks' business.
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From "Tweaks to Consumer Agency Fail to Calm Banks, Credit Unions" The Hill (10/19/09) Brush, Silla
Source: MHI Newswire