The American Bankers Association made a pitch Tuesday to the Senate Banking Committee on its wish list for regulatory reform legislation, highlighting its opposition to a separate consumer agency for banks, efforts to gut federal preemption of state standards and taxing large institutions in advance for resolution costs.

Edward Yingling, the trade group's president, said the ABA is concerned about preserving the dual banking system and argued for the Federal Deposit Insurance Corp. and the Federal Reserve Board "to maintain connection with bank regulation in order for them to effectively carry out their other core functions."

But the ABA argued for taking some power away from the Fed with regard to holding companies so that the central bank could better focus on monetary policy. Yingling said there is no need for the Fed to oversee the holding companies of community and regional banks, which he called a "regulatory distraction," suggesting instead that they "give it to the primary supervisor of the lead bank."

Although the letter was not explicit, the trade group supports letting the Fed regulate large systemically significant companies, said Floyd Stoner, the group's head lobbyist.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access