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Senate Strikes Deal on Preemption Provision

May 21, 2010

The amendment preserves state attorneys generals’ role protecting their citizens against abusive practices.
Insurance Networking News, May 18, 2010

Cheyenne Hopkins

The Senate approved an amendment Tuesday to the regulatory reform bill that would give federal regulators more leeway to preempt state laws, but still allow state attorneys general some enforcement power over national banks.

The measure, approved 80 to 18, was softer on the banking industry than a previous version by Senate Banking Committee Chairman Chris Dodd, but would still be stronger than current law.

“The amendment preserves the ability of state attorneys general to be a backstop for the Consumer Financial Protection Bureau and while the new bureau will be the main enforcer of its new rules, it preserves the role for the state AGs to ensure that consumers are never again put at risk because federal regulators are asleep at the switch,” said Sen. Tom Carper, D-Del., who authored the amendment.

Dodd said the amendment was “really striking a balance.”

“The Carper amendment preserves the state attorneys generals’ role protecting their citizens against abusive practices,” he said.

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