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Groups representing state legislatures and bank supervisors have announced strong support of a legislative initiative to clarify congressional intent on the extent to which states have the authority to protect consumers living within their borders from the activities of unscrupulous financial institutions. The National Conference of State Legislatures and the Conference of State Bank Supervisors commended Reps. Luis Gutierrez, D-Ill., and Barney Frank, D-Mass., and Sen. Jon Corzine, D-NJ., for introducing "The Preservation of Federalism in Banking Act," a bill that would set standards for federal preemption of state consumer protection laws and clarify visitorial rights of state officials seeking to enforce applicable federal or state laws.
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