Press Release of Senator Crapo
Crapo Regulatory Relief Bill Heads To President
Senate passes financial service package to modernize industry
Contact: Susan Wheeler
Washington, DC – As the Senate session wrapped up over the weekend, the U.S. Senate passed by unanimous consent a financial services industry package authored by Idaho Senator Mike Crapo, a member of the Senate Banking Committee. The Financial Services Regulatory Relief Act of 2006 (S. 2856) reduces the regulatory burden on banks, thrift institutions and credit unions in Idaho and nationwide. The financial institutions industry is among the most heavily regulated industries in the country. Reducing the burden of unnecessary or outdated government regulation allows financial institutions to shift their resources from complying with these regulations, to make more small business, consumer and housing loans, enhancing economic development and returning money to consumers in the form of reduced fees. The measure was approved last week in the House and will now be sent to the President for his signature.
Crapo said, “This brings to a close over two years of intense work on regulatory reform for the financial services industry, and I am very pleased that we have reached this point. The last time Congress passed a regulatory relief package was over 10 years ago. As this process demonstrates, it is important for Congress to periodically review the laws applicable to the financial services industry to ensure that compliance and red tape does not impose an unreasonable and unnecessary burden on the economy and truly achieves its intended goals. While there are still reforms that need to be made, this is a terrific beginning. I commend Banking Chairman Shelby, Ranking Member Sarbanes, House Financial Services Committee Chairman Oxley and Ranking Member Barney Frank for their leadership on this issue. Without their tenacious efforts, we would not have reached agreement and passage this Congress. Crapo continued, “Ending the nearly-seven-year logjam over the SEC’s proposed Regulation B (or Reg B) by directing the SEC to work with the Federal Reserve Board to promulgate joint regulations is intended to ensure that regulators do not create a new and burdensome regulatory maze of requirements that would disrupt or interfere with the business practices of banks and thrifts that offer traditional bank products and services to their customers. Ultimately, this legislation will lessen the regulatory burden, so banks, thrifts, and credit unions can better serve their customers and communities.”
Crapo has been the Senate leader in prompting reforms in the financial services industry that will ultimately improve customer services, and has spent the last two years working on this measure.