State-Chartered Banks Bank Holding Companies with Assets Less Than $50 Billion Can Choose Fed Supervision
WASHINGTON D.C. The U.S. Senate today overwhelmingly passed a bipartisan amendment to the Financial Stability Bill (S. 3217) introduced by U.S. Senators Kay Bailey Hutchison (R-TX) and Amy Klobuchar (D-MN) and cosponsored by 27 other members that would ensure state-chartered banks and bank holding companies with less than $50 billion in assets may choose Federal Reserve supervision.
Monetary policy cannot and should not be geared toward large banks based primarily in New York and policy makers in Washington" Sen. Hutchison added.
The Federal Reserve needs insight to the health of our banking system and economy as a whole. Community banks are vitally important components of our banking system and economy. Their importance is not limited to each family or small business that benefits from their services but to the Federal Reserve which uses this information about the health of a banks economy when making monetary policy considerations" said Hutchison
The regional Federal Reserve bank system is a two-way street that both provides the Fed with valuable insight into local economies and serves as a voice for our community banks" said Klobuchar.
This amendment will preserve a system that ensures the Fed has a connection beyond Wall Street that would be lost if the Federal Reserve were to only supervise the largest banks" she
said.
Im pleased to be a co-sponsor of this bi-partisan amendment that preserves the Federal Reserves authority to regulate community banks. It is crucial that local perspectives on our economy - from both large and small banks - are heard said Senator Scott Brown (R-MA).
The Senate passed the Hutchison-Klobuchar amendment 90 to 9.
