WASHINGTON (AP) -- The House Financial Services Committee has
voted to let states regulate large national banks when it comes to
protecting consumers from fraud and abuse.
The measure was approved by a voice vote Wednesday. It's a blow
to the banking industry, which doesn't want to have to comply with
myriad state laws that are often tougher than federal regulations.
Democrats are casting the proposal as a compromise because it
would allow federal regulators to exempt banks from state laws on a
case-by-case basis. The measure was an amendment to a broader bill
to establish a Consumer Financial Protection Agency. That bill is
likely to be approved later Wednesday or Thursday.