PROVIDING FOR CONGRESSIONAL DISAPPROVAL UNDER CHAPTER 8 OF TITLE 5, UNITED STATES CODE, OF THE RULE SUBMITTED BY THE OFFICE OF THE COMPTROLLER OF CURRENCY RELATING TO ``NATIONAL BANKS AND FEDERAL...
Cynthia M. Lummis (Republican, WY) \u2014 2021-5-11

when I joined the Senate Banking Committee last February, I pledged to fairly examine every issue that came before us, with an eye for detail and a fresh perspective-- promoting innovation, free markets, and our dual banking system. prgtoken I support the policy goals of the true lender rule in promoting access to credit for underserved communities. I also recognize how vital it is to provide legal clarity to financial technology innovators during this time of change. I support all banks' powers, both State and national, to export interest rates across State lines and to make unassigned loans with clear regulatory certainty. Again, this promotes access to credit. prgtoken The issues raised by the Office of the Comptroller of the Currency's true lender rule and S.J. Res. 15, however, are not limited to ensuring access to credit or protecting consumers from predatory lending and have much larger implications for our banking system. prgtoken State-chartered banks have existed since the founding of our Republic. After the passage of the National Bank Act of 1864, our country fostered a dual banking system, and our country is all the stronger for it. The United States is the leader of the global financial system because we have a banking system that is based on competitive equality, flexibility, and innovation. prgtoken Under the Federal laws that protect our dual banking system, State and nationally chartered depository institutions have nearly identical powers to carry out the business of banking across State lines with legal clarity. This is because of State parity and the so-called State wild card laws, the Riegle-Neal Act, and subsequent amendments over the years. The Federal Reserve and the FDIC have broadly supported these policies as well, adopting rules that promote equality for State banks vis-a-vis national banks. prgtoken Esther George, President of the Kansas City Fed, noted in a 2012 speech that ``the dual banking system has provided and continues to offer significant benefits to our financial system and economy . . . multiple options for state and federal charters have led to considerable innovation and improvement in banking services.'' prgtoken So Congress and our Federal bank supervisors, on a roundly bipartisan basis, have always been committed to maintaining parity between State and nationally chartered institutions. prgtoken This brings us to today's vote. The problem with the true lender rule before us is that it has the potential to upend parity between State and national banks. In a nutshell, the OCC true lender rule determines which banks or other financial institutions actually make a consumer loan. Many States have different legal standards for determining this. Ultimately, this would allow national banks to make and assign loans more easily than State-chartered banks, giving them a distinct advantage in the lending business. prgtoken The Board of Governors of the Federal Rese