Crapo Regulatory Relief bill signed into law
Long-awaited reform package reduces obsolete and unnecessary regulations
Washington, DC - A regulatory reform package that will significantly reduce burdensome and redundant regulations in the financial services industry has been signed into law by the President. The Financial Services Regulatory Relief Act of 2006 (S. 2856), authored by Idaho Senator Mike Crapo, cleared the Senate by unanimous consent and House with an overwhelming approval margin last month. The measure, which takes effect immediately, reduces the regulatory burden on banks, thrift institutions and credit unions in Idaho and nationwide. Crapo, who sits on the Senate Banking Committee, said, "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 Reducing the burden of unnecessary or outdated government regulation allows financial institutions to shift their resources from complying with these regulations to making more small business, consumer and housing loans, enhancing economic development and returning money to consumers in the form of reduced fees. Congress needs 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. I am pleased that we were able to move this legislation through Congress this session, and want to thank Banking Chairman Shelby, Ranking Member Sarbanes, House Financial Services Committee Chairman Oxley and Ranking Member Barney Frank for their leadership on this issue." Gavin Gee, Director of the Idaho Department of Finance, applauded the leadership role that Crapo has played in this effort. "Senator Crapo's outstanding leadership on financial services regulatory relief in the U.S. Senate has produced this much needed legislation, which we fully support. We applaud Senator Crapo for his significant work and primary leadership role in this important effort, which will benefit all Idaho financial institutions and their customers." The effort to bring the financial services industry regulations in line with current technology has been underway for more than six years. About three years ago, Crapo was tasked with the project and has spent countless hours working with interested entities to develop a package of reforms that would successfully pass this Congress. The last time Congress passed a regulatory relief package was over ten years ago.