The U.S. House overwhelmingly passed the “Industrial Bank Holding Company Act of 2007.” The bill restores the historic separation between banking and commerce, prevents branch banking by some commercially-owned ILCs, and bolsters the supervisory authorities of the FDIC as a holding company regulator. “H.R. 698,” was co-sponsored by Paul Gillmor (R-OH), Barney Frank (D-MA), and Jim Marshall (D-GA). The bill was introduced on January 29th, the subject of a hearing on April 25th, and was overwhelmingly passed by the Financial Services Committee on May 2nd. Frank, who is Chairman of the House Committee on Financial Services, said he hopes to work with the Senate to forge a compromise bill that the President can sign.
The U.S. House Financial Services Committee held a hearing yesterday on “Credit Card Practices: Current Consumer and Regulatory Issues.” However, no credit card issuers testified. Among those present were Edward Yingling, President and CEO, American Bankers Association who said credit cards provide more services at little or no cost, and with lower interest rates than ever before. However, Yingling noted that the increased complexity of credit cards causes confusion and sometimes results in a difficult financial situation. But, the industry is taking these concerns very seriously and working to address them. Yesterday was the first in a two-part series of hearings on credit card practices. The second is scheduled for the first week in June wherein federal and state regulators plan to discuss the anticipated revision to the regulations governing disclosure for credit cards by the Federal Reserve.
President Bush last week signed the “Fair and Accurate Credit Transactions Act of 2003”.