Tuesday to drop legislation that would restrict federal regulators from overriding state laws.
"Serious problems could arise in our nation's economy if Congress changes current preemption standards and procedures," they wrote in a letter to all lawmakers. The legislation "would engender litigation in almost every area of commercial practice and this would disrupt financial markets."
Enactment could drive up mortgage rates, constrict the availability of credit cards, and disrupt the sale of mutual funds by exposing these products to inconsistent state laws, the letter said.
The legislation passed the Senate Governmental Affairs Committee and a House Government Reform subcommittee last month. However, Rep. David McIntosh, sponsor of the House legislation, agreed this week not to push the bill until next year.
-- Dean Anason