Government News

The House Financial Services Subcommittee on Financial Institutions, chaired by Rep. Spencer Bachus (AL), will hear industry perspective on impending regulatory relief legislation on April 25.

On March 14, Rep. Shelley Moore Capito (WV) introduced H.R. 3951, the Financial Services Regulatory Relief Act of 2002.  The bill would alter a host of outdated laws governing the financial services industry to counterbalance the additional regulatory burden placed on the industry by Title III of the USA Patriot Act signed by President Bush on Oct. 26.     

"This plan is about enabling financial service providers to work in a more efficient and effective manner, offering greater ease to consumers,? Capito said.  ?I look forward to hearing Thursday?s testimony on how to make this bill even better."

?This legislation will help financial institutions focus on what?s important: serving customers while adhering to efficient and effective regulations that prevent financial crime,? Financial Services Committee Chairman Michael G. Oxley (OH) said.  ?Ms. Capito?s bill will remove unnecessary regulations and allow for a smoother and more efficient compliance process for financial institutions across the country.?

Some of the provisions included in the legislation would:

• Modernize record keeping requirements for regulators;
• Prevent criminals from participating in the affairs of any depository institution;
• Give flexibility to banks in payment of dividends;
• Increase the ability of savings associations to invest in small business investment companies;
• Allow regulators to adjust exam cycles of healthy depository institutions for greater efficiency;
• Streamline depository institution merger application requirements.

During the Subcommittee?s first hearing addressing regulatory relief legislation on March 14, the Subcommittee heard testimony from the Federal Reserve, Comptroller of the Currency, Federal Deposit Insurance Corporation and other selected regulators.   Thursday?s Subcommittee hearing will focus on industry views of the legislation. 

Scheduled to Testify:

• Charlene Gaither, Manager, Eastern Panhandle Community Federal Credit Union, Martinsburg, West Virginia on behalf of Credit Union National Association

• Bill Cheney, President & CEO, Xerox FCU,  El Segundo, California on behalf of National Association of Federal Credit Unions

• Pierce Stone, Chairman, President & CEO, Virginia Community Bank,   Louisa ,  Virginia on behalf of Independent Community Bankers of America

• Curtis ?Curt? L. Hage, Chairman & CEO, Home Federal Bank,  Sioux Falls ,  South Dakota  on behalf of   America?s Community Bankers

• Elizabeth Duke, President, South Trust Bank,  Virginia Beach on behalf of the American Bankers Association