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For Immediate Release: December 7, 2006

REP. FRANK FLOOR STATEMENT ON FEDERAL DEPOSIT INSURANCE ACT AMENDMENT

(House of Representatives - December 7, 2006)

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Mr. Speaker, I join with the gentleman from Texas in urging the House to pass this bill. It is an example, I think, of how we should be flexible in our approach to regulation. Regulation plays a very important role in a sensible, capitalist economy, but it can only play that role if it is flexible and appropriate, and overregulating does damage in ways different, but still quite tangible, than underregulating.

   We are in particular here responding, our committee is, in a bipartisan way to a very important group of officials, the State bank supervisors. In fact, it was the Conference of State Bank Supervisors who most pushed for this because what they have asked us to do is to give the Federal regulators with whom they work the flexibility that most of them have on their own.

   As Members know, Mr. Speaker, some banks, depending on how they are chartered, are entirely Federal in their regulation but some are State-chartered and are regulated by both State and Federal regulators in various ways. This bill will allow better coordination between State and Federal regulators. It will give the regulators the discretion, not the mandate, to be more flexible in the timing of regulations.

   It is an example of how we should make regulation appropriate, not unduly burdensome, and therefore, I am glad to join with the gentleman from Texas in urging passage of this bill.