LANSING –- The state Senate adopted today Senate Resolution 14, sponsored by Sen. Darwin Booher, encouraging Congress to slow down or stop proposed rules that may negatively impact customers of Michigan community banks and credit unions.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the Federal Reserve to issue debit interchange fees rules by April 2011. The reserve proposed rules in December, which are scheduled for a hearing by the U.S. House Financial Services Committee on Feb. 17.
“I sponsored this resolution to send a strong message to Congress: Stop any rules from being adopted that would harm our community banks, credit unions and the millions of Michigan consumers that use them,” said Booher, R-Evart. “As currently proposed, the rules would force credit unions and community banks to absorb the costs of fraud and data security. That would result in less credit available for job providers, increased fees and the ending of popular services like free checking.”
SR 14 was adopted unanimously and asks Congress to slow down or stop the Federal Reserve from adopting the proposed rules until the concerns are addressed.
“It would be shameful if Michigan families and job providers end up paying the price of an irresponsible federal rule,” said Booher, chair the Michigan Senate Banking and Financial Institutions Committee. “Access to credit is critical for small businesses that create more than 70 percent of Michigan jobs. With more than 40 years of experience as a banker in the private sector, I know that hurting an institution’s ability to lend capital is bad for the economy. I hope Congress will do the right thing and ensure consumers are protected.”
An identical measure, House Resolution 21, was recently taken up by the House Banking and Financial Service Committee with the support of the Michigan Credit Union League, Michigan Association of Community Bankers and the Michigan Bankers Association.
Editor’s Note: A photograph of Booher discussing his resolution as chair of the Senate Banking and Financial Institutions Committee is available at: