NEWS RELEASE
Dec. 11, 2009
ABA Media Contact: Peter Garuccio    
(202) 663-5452
E-mail: pgarucci@aba.com

                                            ABA STATEMENT ON HOUSE PASSAGE OF 
                                    FINANCIAL REGULATORY REFORM BILL (H.R. 4173)

                               by Edward L. Yingling, ABA president and chief executive officer

        “The American Bankers Association supports broad reform of the banking regulatory system and we have expressed this view in testimony before Congress numerous times this year.  However, we remain opposed to the legislation approved by the House today because it contains some key negative provisions.

        “For more than a year, ABA has consistently supported reform, including the formation of a council charged with overseeing systemic risk, creation of a mechanism for the orderly resolution of systemically important non-banks, and ending too-big-to-fail.

        “While H.R. 4173 contains these elements, and other important reforms, the bill also contains elements that we cannot support. 

        “In particular, the breadth of authority granted to the director of the proposed new consumer financial regulator is unprecedented, and this new regulator would not be responsible for considering institutional safety and soundness along with consumer protection.  ABA has consistently maintained that consumer protection should not be separated from safety and soundness in the regulation of insured depository institutions. 

        “Reform is needed, and ABA wants to work with the Congress and the Administration to enact that reform, but the House-passed bill contains provisions that have nothing to do with needed reform and which could make it very difficult for banks to effectively serve their consumer and business customers.”

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The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.3 trillion in assets and employ over 2 million men and women.