WASHINGTON - As House Republicans intensified their push for a temporary moratorium on federal regulations, a key House Banking Committee Democrat rose up against the ban.
Rep. Bruce Vento, D-Minn., sent a letter Thursday to federal bank regulators questioning the impact of the moratorium bill, which would affect regulations implemented from Nov. 9 through June 30, 1994, and other GOP regulatory reform measures on federally insured financial institutions.
"The hurdles and restrictions inherent in the GOP package will provide the Charles Keatings and other bad actors with an open season to raid U.S. banking and financial institution insured deposits," the ranking Democrat on House Banking's financial institutions subcommittee charged. "The end result could be a financial debacle that would rival the infamous S&L bailout."
Rep. Vento also sent a list of questions to regulators, one of which focused on a provision tucked away in the "Job Creation and Wage Enhancement Act."
The measure would give legal standing to anyone who is "economically impacted" by a regulation. Rep. Vento voiced his concerns that this could hold up the interstate banking law that passed last year.
"There wasn't absolute unanimity in the passage of interstate, so you can expect certain groups to view this as a chance to bring up suits," Rep. Vento said in an interview. "It can be challenged by virtually any citizen."
Bert Ely, a financial services consultant based in Alexandria, Va., said: "Rep. Vento may have surfaced a serious unintended consequence of the legislation here."
The House Government Reform subcommittee on regulatory affairs Thursday held the first hearing on the moratorium bill, HR 450.
Subcommittee Chairman David McIntosh, R-Ind., accused President Clinton of having "a love affair with federal regulations."
"The American people need a break from the daily deluge of new regulations," he said.
