WASHINGTON — The House Financial Services Committee agreed Wednesday to ensure that states can impose their own tough consumer-protection laws against big banks, dealing a blow to a financial industry blamed for bringing down the U.S. economy and that has lobbied furiously against more government oversight.
The measure, approved by voice vote, would allow federal regulators to exempt national banks from state laws if those laws would “significantly interfere” with the banks’ ability to do business. Otherwise, banks would be forced to comply with myriad state laws that are often tougher than federal laws, under the House plan. The House panel was on track to approve by today broader legislation that would create a Consumer Financial Protection Agency dedicated to monitoring such common financial products as credit cards and mortgages.
Wednesday’s debate was the latest tussle between lawmakers, who say they are working to protect Americans from abusive rate hikes and predatory lending, and a powerful financial lobby with deep pockets. The financial industry has contributed more than $53 million this year to members of Congress and the political parties, with $6 million to members of the House Financial Services Committee through July, according to the watchdog group Center for Responsive Politics. The Associated Press
