Big financial firms losing power on Capitol Hill

[AllentownJake]

Large banks are on the verge of losing a key legislative battle over the shape of financial reform, an unusual setback that reflects the continued political backlash over their role in creating the financial crisis.

The House Financial Services Committee is expected to vote Tuesday to let state governments protect bank customers by imposing restrictions that go beyond existing federal laws, according to congressional and industry sources.

The move would roll back a doctrine called preemption that has allowed big banks to answer solely to federal regulators. The banks argue that operating under a single set of rules is more efficient and results in lower prices for customers. But the Obama administration, which is pushing for the change, regards preemption as a cause of the crisis because it prevented state regulators from quashing obvious abuses.

The change essentially would unleash 50 additional regulators on the largest banks.

Large banks have fought bitterly against the proposal, which they regard as one of the most problematic components of the administration's financial reform plan, but they have been unable to sway House Democrats.

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/18/AR2009101802156.html

Score one for the good guys...it's a start :-)

[asdjrocky]

1. I clicked on this thinking it was undoubtedly a joke.

It is a start.

[AllentownJake]

3. Praise when they do the right things

This is one of those right things to do.

[asdjrocky]

7. 100% with you on that.

I'm still hoping for the day when I can call my rep and tell him I'm proud. It could happen.

[ananda]

2. Healthcare providers, insurers, and big pharma next!

STAT

[AllentownJake]

8. I'll start with CitiGroup, Bank of America and Wells Fargo

Hell, if those 3 get brought back down to earth...we can save the other group for the second term.

[WyLoochka]

13. Insurers are accountable to state

regulators today. They've been lobbying for decades to get just one federal regulator that they could buy off.

The more regulators the better with these types of humungous businesses.

[NYC_SKP]

4. K,R, and thank you for posting. nt

[AllentownJake]

5. This is a round about way of starting to smash too big to fail

State legislators are notoriously hostile to businesses that don't have a substantial presence in their community but take money out.

Laws will be written on a state level to benefit banks domiciled in those states.

[Thickasabrick]

6. K&R ...Finally!!! nt

[arcadian]

9. Yeah right, that'll be the day...

:eyes:

[AllentownJake]

10. No actually this is happening

Apparently the administration sided with the liberal caucus...for once.

[patrice]

11. They shouldn't worry; the Senate will fix it for them. nt

[pnorman]

12. Sounds like a strong affirmation of STATES RIGHTS!

So how will those Teabaggers spin this now?

pnorman

[drm604]

14. They'll say that their rallies convinced congress

to vote against those liberal banks!

[Neecy]

15. Very positive news

K&R

[AllentownJake]

16. Late night Kick