Brown Prods Congress on Financial Services Reform

Attorney General Edmund G. Brown Jr. today sent a letter to House Speaker Nancy Pelosi, calling on Congress to pass tough financial services reform legislation that contains strong consumer protection and allows state attorneys general to “enforce all federal consumer protection laws against national banks, not just regulations that may be adopted by the new Consumer Financial Protection Agency.”

Brown’s letter:

Dear Speaker Pelosi:

In anticipation of a compromise on the House and Senate financial services reform bills, I urge you to press for the strongest possible language to protect consumers and our economy from another debilitating crisis caused by reckless Wall Street banking practices and complicit federal regulators.

Two elements of a compromise bill are key to that protection. One, national banks should be subject to the same state consumer protection laws as state banking institutions and virtually a! ll companies operating in industries other than financial services. And, two, state attorneys general should have the authority to enforce all applicable consumer protection laws against national banks.

The House language is preferable on both points, and I recommend that you push for its adoption. It would establish a higher burden for the OCC to preempt state consumer protection laws. It also would allow state attorneys general to enforce all federal consumer protection laws against national banks, not just regulations that may be adopted by the new Consumer Financial Protection Agency.

Sincerely,

EDMUND G. BROWN JR.