You are here:HomeIssuesProtecting State Insurance Regulation 2011Rep. Frank Calls for Talks on Preemption With OCC, Threatens Legislation

Rep. Frank Calls for Talks on Preemption With OCC, Threatens Legislation

Preemption regulations instituted by the Office of the Comptroller of the Currency (OCC) are still drawing fire from Congress. Two senior Democratic members of the...
March 28, 2011

Preemption regulations instituted by the Office of the Comptroller of the Currency (OCC) are still drawing fire from Congress. Two senior Democratic members of the House Financial Services Committee called on March 17 for the OCC to address problems with the new rules, and threatened to introduce a measure to overturn them if the OCC is unresponsive. The regulations, which took effect February 12, that only the OCC has supervision and examination authority over national banks and their operating subsidiaries and effectively preempt a broad array of state consumer protection statutes.

Reps. Barney Frank (D-Massachusetts) and Luis Gutierrez (D-Illinois) said their concerns are shared by many Republicans on the committee. On February 25, the House Financial Services Committee passed a budget resolution that contained language critical of the new preemption rules. The language was contained in an amendment offered by Reps. Gutierrez and Ron E. Paul (R-Texas). Committee members approved the amendment by a 34-28 vote.

The National Association of Attorneys General, the National Governors Association, the Conference of State Bank Supervisors, National Association of Realtors and the Consumer Federation of America have all spoken out in opposition to the OCC preemption rules.

What It Means to Agents: Since this dispute involves OCC preemption regarding banks and not insurance, we don't have a dog in this fight - but we do in the bigger battle. OCC's stated rationale is similar to that which it uses when it tries to preempt insurance consumer protection laws at the state level. PIA has sued the OCC in these instances.