Hearing of U.S. Senate Committee on Banking, Housing, and Urban Affairs "Consideration of Regulatory Relief Proposals"
Hearing of U.S. Senate Committee on Banking, Housing, and Urban Affairs "Consideration of Regulatory Relief Proposals"
Mr. Chairman, thank you for calling this hearing. It is important that we periodically review the regulatory regime that we impose on banks and credit unions.
With the caveats that we not compromise the safety and soundness of our banks or weaken consumer protections, I support these efforts.
Our financial institutions are the heart of what is certainly the most dynamic economic system in the world. And, while the economy ebbs and flows, our banks and credit unions play an integral role in our daily lives.
They help us buy our first home, finance our children's college tuition, and pay for the orthodontist's bill.
So, it is very important that we take a careful approach to the issue of reform so we do not unintentionally disrupt the ability of these institutions to fulfill their missions.
Another reason for reform was made clear just a few days ago. While we have witnessed some unfortunate news related to the loss of credit card data, it appears that when our banks are involved the problem tends to be dealt with quickly.
I am convinced that we must do more to require the safekeeping of our personal data, but the banking industry appears to be one of the better actors when it comes to this problem.
Unfortunately, they bear the brunt of the bad media. In part, this is due to outdated regulations that prevent a bank from disclosing the details surrounding the security breach to their customers - and I am told by my constituents that this may include the name of the vendor responsible for the breach.
Also, I must point out my concern that our small banks and credit unions - the ones most burdened by the costs of oversight - need to have their concerns addressed.
These smaller institutions are simply not capable of spreading the costs of regulations over millions of account holders. We must be mindful of the impact that a prospective bill may have on them.
I look forward to the testimony of our witnesses and moving forward on a well-reasoned regulatory relief bill.
Thank you.
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