Statement of New York Superintendent of Banks Richard H. Neiman
July 21, 2010
New York, N.Y.: “The financial reform bill signed today by President Obama is a big victory for the nation, as well as a victory for New Yorkers. A properly regulated financial system is critical to consumers and small businesses, but is just as beneficial for our financial foundation itself – including our state’s financial services firms and their employees. With the leadership of the President, Majority Leader Reid, Speaker Pelosi, and Chairmen Dodd and Frank, this new law reduces risks to our system. It addresses too big to fail, consumer protection, regulatory arbitrage, derivatives regulation, and limits the activities of institutions that benefit from the federal safety net. Indeed, with new rules and higher expectations, banks can again be the engines of our economy.”
“It is a victory for all of us that a new systemic risk council will weed excess risk out of financial institutions before they pose a threat to the entire system and that any institution that moves too close to cliff’s edge will be quickly dismantled by a powerful new resolution process. Further, the derivatives exposures that led to the near collapse of AIG and exacerbated the financial crisis will be curtailed and made more transparent by mandatory centralized clearing and exchange trading of most derivatives. Overall, banks will be held accountable for risks they pose and mortgages they securitize, and will be prohibited from trading for their own profits rather than for their customers.”
“Equally important, the bill recognizes the lead that states like New York have taken in protecting consumers over the past decade. New York was one of the first states to crack down on subprime lending. But our efforts were thwarted by the federal bank regulatory agencies that overexerted their power to preempt state laws. The law signed today not only creates a new federal agency to protect consumers, but it also re-establishes the right of states to protect their citizens from national bank abuses by codifying a higher preemption standard with meaningful judicial review.”“The citizens of New York are safer today than they were yesterday. Now with a strong financial foundation reestablished, our nation must redouble its efforts towards job creation and economic innovation, with these new rules to fuel our recovery.”
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.