November 17, 2003 News Archive

Senate Passes Fair Credit Bill
The Senate recently passed legislation (S.1753) to extend permanently the preemption provisions of the Fair Credit Reporting Act by a vote of 95-2. The preemption provisions of the Fair Credit Act are due to expire at the beginning of 2004. The legislation would establish a national credit reporting standard and take a number of steps to help combat identity theft. Among other things, the law would give consumers free annual copies of their credit reports and require financial institutions to follow red flag procedures when they suspect identity theft. The House version of the legislation (H.R. 2622) was passed by a vote of 392-30 on Sept. 10. Differences between the House and Senate versions of the legislation will be worked out in a conference committee.

House Members Voice Concerns Over Basel II Proposal
On November 3, 2003 eleven members of the House Financial Services Committee sent a letter to federal banking regulators urging a thorough examination of the most recent advanced notice of proposed rulemaking by the Basel Committee on Banking Supervision. The 13-page letter (PDF) expressed concerns about the proposal in such areas as operational risk, commercial real estate, securitization, and accounting. The letter also highlighted the potential cost and complexity of the new accord and its potential to harm competition. House Financial Service Committee Chairman Michael G. Oxley (R-Ohio) promised that his committee would monitor the Basel process to ensure that, "U.S. companies and the U.S. economy are not disadvantaged by the new rules in any way." Others signing the letter were: Reps. Barney Frank (D-Mass.), Richard Baker (R-La.), Paul Kanjorski (D-Pa.), Sue Kelly (R-N.Y.), Luis Gutierrez (D-Ill.), Peter King (R-N.Y .), Carolyn Maloney (D-N.Y.), Robert Ney (R-Ohio), Maxine Waters (D-Calif.), and Spencer Bachus (R-Ala.).