ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release August 27, 2004 #04-42
E-mail: [email protected]

ACB CRITICIZES SEC’S PROPOSAL IMPLEMENTING GLB LAW

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America’s Community Bankers has told the Securities and Exchange Commission that any final rule implementing the Gramm-Leach Bliley Act’s changes to the Securities and Exchange Act of 1934 “must treat savings associations and savings banks on a parity with commercial banks.”

In its comment letter filed today, ACB was critical of the SEC’s proposed new Regulation B, which would implement the functional exemptions for banks from the definition of “broker” that were added to the Securities and Exchange Act of 1934 by the Gramm-Leach Bliley Act.

Specifically, ACB expressed concerns that, “While the rule would offer savings associations the right to conduct many of the activities permissible for banks under Title II of Gramm-Leach-Bliley, certain custody and other activities would not be allowed unless the SEC receives evidence that savings associations engaged in these activities.”

ACB added that, “Savings associations should have the same right to change and grow their businesses so they can compete with banks on an equal footing. The final rule should apply equally to all depository institutions, whether they are banks or savings associations.”

ACB noted with dismay that the new SEC proposal is a step backward from the interim rule. “Our expectations upon seeing savings associations treated equally in the interim rule have been dashed in the proposed rule.”

ACB also expressed broader concerns that the proposed rule was “unnecessarily complex and will be unworkable in many areas.” ACB also questioned the SEC’s motivation for such a complex and difficult rule, stating that, “A narrow, complex rule will not serve the needs of the banking industry or their customers in a way envisioned by Congress . . . The SEC appears to believe that without all of the conditions and requirements, banks would simply disregard the law and banking supervisors would let them.”

ACB concluded that, “Savings associations must be given full parity and aspects of the rule should be revised to give full effect to Title II of Gramm-Leach-Bliley.”

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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