“Floor or ceiling” debate continues
December 10, 2009 | alternatives, federal legislation, industry | Comments (0)From the Huffington Post:
The Obama administration, Financial Services Committee Chairman Barney Frank, state attorneys general and a coalition of consumer advocates and law professors want states to be able to enforce tougher consumer financial protections.
The big banks, obviously, want federal regulations — which they have found relatively easy to influence — to preempt any more onerous state rules for banks operating in more than one state.
Working on behalf of the big banks, the New Dems were able to extract a compromise that will allow federal regulations to preempt state laws on a case-by-case basis.
At issue was whether federal regulations should be a floor or a ceiling for consumer protection in the states, particularly as they affect big national banks like JPMorgan Chase, Citibank, Bank of America and Wells Fargo.
I’ll try to get clarification from industry lobbyists as to what this means for payday lending.
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