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Regular Session, 2010 ENROLLED
SENATE RESOLUTION NO. 147
BY SENATOR DUPLESSIS
A RESOLUTION
To memorialize the Congress of the United States to oppose the creation of a new consumer
regulatory agency for FDIC insured institutions.
WHEREAS, H.R. 4173 and S. 3217 are sweepingly broad bills pending in conference
in the United States Congress that would restructure the financial regulatory system; and
WHEREAS, both measures would create a new Consumer Financial Protection
Agency/Bureau with overly broad powers that would have complete authority over
Louisiana banks and thrifts with respect to writing future consumer regulations; and
WHEREAS, although improvements can and should be made to further protect
consumers from unscrupulous practices, the creation of an enormous, new federal
bureaucracy is the wrong approach because it will harm both Louisiana banks and their
customers; and
WHEREAS, Louisiana banks and thrifts will be subject to greatly increased
regulation and compliance costs, which will hamper their ability to effectively serve their
customers' needs; and
WHEREAS, this increased regulatory burden will likely lead to increased costs of
obtaining credit for consumers and overall less access to financial products and services; and
WHEREAS, the vast majority of FDIC insured institutions, especially Louisiana banks and
thrifts, did not contribute to the financial crisis, yet would be subject to the broad jurisdiction
of this proposed agency; and
WHEREAS, Louisiana banks and thrifts are already heavily regulated and examined
on a regular basis for compliance with existing consumer laws and safety and soundness; and
WHEREAS, this new proposed agency, which has no experience as a bank regulator,
would likely create a mountain of new regulation that is one sided in its focus without
balancing bank safety and soundness considerations of the financial institution; and SR NO. 147 ENROLLED
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WHEREAS, this will put Louisiana banks and thrifts in a position where they must
try to comply with conflicting mandates that ultimately could put their businesses at risk;
and
WHEREAS, creating another layer of bureaucracy in the banking industry also does
not address the gaps in regulation that exist with respect to non-bank lenders; and
WHEREAS, the Obama administration itself has acknowledged that 94% of the high-
cost mortgage loans that have so damaged our economy were made by non-bank financial
companies; and
WHEREAS, with this in mind, Congress should concentrate on improving the
supervision and examination of such non-bank institutions rather than adding to an already
large regulatory compliance structure for banks and thrifts.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana memorializes
the Congress of the United States to oppose the creation of a new consumer regulatory
agency for FDIC insured institutions.
BE IT FURTHER RESOLVED that a copy of this Resolution shall be transmitted
to the secretary of the United States Senate and the clerk of the United States House of
Representatives and to each member of the Louisiana delegation to the United States
Congress.
PRESIDENT OF THE SENATE