For Immediate Release
April 29, 2010
Statement on the “Merkely Amendment” to Protect Financial Regulations from International Preemption
by Arthur Stamoulis, Director, Oregon Fair Trade Campaign
“Americans want better oversight of the financial industry, but a provision hidden in the Senate’s 1200-page financial reform bill actually promotes new deregulation.
“The Senate’s financial reform bill grants a newly-created Office of National Insurance with the power to enter into international financial service agreements without Congressional approval, and to determine which state insurance regulations are preempted by these agreements.
“Never before has Congress granted a federal agency the right to unilaterally set U.S. trade policy.
This deregulatory measure is truly astounding, and could have a profound effect on both state sovereignty and the financial stability of the nation. The last thing we need is the meltdown that hit the big banks spreading into state-regulated insurance operations.
“Thankfully, freshman Senator Jeff Merkley has crafted an amendment to remove this egregious provision from the financial reform bill. The Merkley amendment has the potential to head off a disaster in the making.
“Many elected officials have turned a blind eye to the deregulatory financial measures in World Trade Organization pacts and other international trade agreements. Oregon is lucky to have a Senator more interested in the economic health of the state and the nation than in the commercial interests of foreign insurance providers. Hopefully, the Merkley measure will pass and the reform debate can continue.”
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Background Documents:
Letter from Public Citizen, U.S. PIRG and Consumer Watchdog
Letter from the National Association of Insurance Commissioners
Resolution by the National Conference of State Legislators
Letter from the National Conference of Insurance Legislators