WASHINGTON -- A key consumer group is wading into the battle over legislation intended to make the federal banking agencies a little more independent.
The Senate amended the Community Development Financial Institutions Act to lessen the administration's control over the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Among other provisions, the measure would bar Treasury from intervening in enforcement proceedings.
In a letter to Banking Committee chairman Henry B. Gonzalez, D-Tex., the Consumer Federation of America said the measure would have the effect of "removing undue political influence" from the day-to-day operations of the agencies.
Advocacy Cited
"The Department of Treasury is, by definition, a political arm of whatever administration is in power and, as such, is often required to adopt an advocacy role in pursuit of political agendas," said Chris Lewis, the Consumer Federation's chief lobbyist.
"Where these agenda depart from sound regulatory policies, the OCC and OTS should be free to so state and to provide the Congress with independent data and judgments," he added.
The Senate measure, which was sponsored by Sen. Alfonse M. D'Amato, R-N.Y., and Senate Banking Committee chairman Donald W. Riegle, D-Mich., was prompted in part by Sen. D'Amato's concern over the Whitewater-Madison Savings and Loan controversy.
Sen. D'Amato has said that the continuing investigation of financial institutions in which President Clinton had dealings demonstrates the need for agency independence.
Backed by Bankers
Bank groups also support increased independence for the agencies.
"There's a general concern that banks are always convenient targets," said Edward L. Yingling, chief lobbyist for the American Bankers Association.
Randy McFarlane, chief lobbyist for the Savings and Community Bankers of America, said his organization was also supportive.
