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Regular Session, 2010
SENATE RESOLUTION NO. 147
BY SENATOR DUPLESSIS
CONGRESS. Memorializes Congress to oppose the creation of a new consumer regulatory
agency for FDIC insured institutions.
A RESOLUTION1
To memorialize the Congress of the United States to oppose the creation of a new consumer2
regulatory agency for FDIC insured institutions.3
WHEREAS, H.R. 4173 and S. 3217 are sweepingly broad bills pending in conference4
in the United States Congress that would restructure the financial regulatory system; and 5
WHEREAS, both measures would create a new Consumer Financial Protection6
Agency/Bur eau with overly broad powers that would have complete authority over7
Louisiana banks and thrifts with respect to writing future consumer regulations; and 8
WHEREAS, although improvements can and should be made to further protect9
consumers from unscrupulous practices, the creation of an enormous, new federal10
bureaucracy is the wrong approach because it will harm both Louisiana banks and their11
customers; and 12
WHEREAS, Louisiana banks and thrifts will be subject to greatly increased13
regulation and compliance costs, which will hamper their ability to effectively serve their14
customers' needs; and15
WHEREAS, this increased regulatory burden will likely lead to increased costs of16
obtaining credit for consumers and overall less access to financial products and services; and17
WHEREAS, the vast majority of FDIC insured institutions, especially Louisiana banks and18 SR NO. 147
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thrifts, did not contribute to the financial crisis, yet would be subject to the broad jurisdiction1
of this proposed agency; and 2
WHEREAS, Louisiana banks and thrifts are already heavily regulated and examined3
on a regular basis for compliance with existing consumer laws and safety and soundness; and4
WHEREAS, this new proposed agency, which has no experience as a bank regulator,5
would likely create a mountain of new regulation that is one sided in its focus without6
balancing bank safety and soundness considerations of the financial institution; and 7
WHEREAS, this will put Louisiana banks and thrifts in a position where they must8
try to comply with conflicting mandates that ultimately could put their businesses at risk;9
and 10
WHEREAS, creating another layer of bureaucracy in the banking industry also does11
not address the gaps in regulation that exist with respect to non-bank lenders; and 12
WHEREAS, the Obama administration itself has acknowledged that 94% of the high-13
cost mortgage loans that have so damaged our economy were made by non-bank financial14
companies; and 15
WHEREAS, with this in mind, Congress should concentrate on improving the16
supervision and examination of such non-bank institutions rather than adding to an already17
large regulatory compliance structure for banks and thrifts.18
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana memorializes19
the Congress of the United States to oppose the creation of a new consumer regulatory20
agency for FDIC insured institutions.21
BE IT FURTHER RESOLVED that a copy of this Resolution shall be transmitted22
to the secretary of the United States Senate and the clerk of the United States House of23
Representatives and to each member of the Louisiana delegation to the United States24
Congress.25 SR NO. 147
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Duplessis SR No. 147
Memorializes Congress to oppose the creation of a new consumer regulatory agency for
FDIC insured institutions.