From AFR member NACA:

Carper Amendment Provides Complete Immunity to Wall Street Banks

OPPOSE Amendment #3949

A vote for the Carper Amendment is a vote against consumer protection. Please stand up for Main Street and oppose Amendment #3949.

The Restoring American Financial Stability Act of 2010 is a modest bill that contains language on preemption and Attorney General enforcement that is ideal for neither side, but is a compromise.  By further weakening the bill, as Senator Carper’s amendment proposes to do, Congress will dismantle the very purpose of the Consumer Financial Protection Bureau (CFPB), to protect the American consumer.

Attorney General Enforcement of CFPB Rules:  The Carper amendment would prevent Attorney Generals from protecting their citizens from the illegal acts committed by big banks.  Any entity that violates the law should be held accountable.  It is critical that Attorney Generals be able to protect their citizens from the illegal acts committed by banks, 98% of which will fall outside CFPB enforcement.  For the largest banks that fall within CFPB enforcement, the reality is that the CFPB cannot be everywhere at once.  State Attorney Generals are the first responders on the ground and need to be able to act.

Immunity from State Law:  Amendment SA 3949 would enable national banks to ignore state laws that address abuses not yet covered by federal law.  States are first responders who act first and stop local abuses from spreading to a national problem.  It is state laws that are most important when there is a gap in federal law.  The minimal requirements in the current bill are the very least that our constitutional system of federalism demand: that, before preempting state law, the OCC determines whether a particular state law actually imposes significant interference with banking.  This provision cannot be weakened any further.

Banks – which have opposed strong consumer protection all along – are attempting to weaken the Restoring American Financial Stability Act through preemption of state law and removal of Attorney General enforcement power.  Stand up to the big banks and oppose Carper Amendment #3949.

Sincerely,

Cora L. Ganzglass

Legislative Director

National Association of Consumer Advocates