House Panel Hearing Set On Comptroller Action

The hearing is set for Tuesday.

"This hearing will require the OCC to publicly justify its decision to finalize these rules prior to Congressional review," Rep. Kelly said.

The rules at issue affect banking activities and do not appear to have any impact on bank insurance activities, which are governed by the Gramm-Leach-Bliley Act. Nevertheless, the National Association of Professional Insurance Agents issued a statement lauding Rep. Kelly for demanding the OCC "?publicly justify' rules that give only the OCC, and not the states, the right to examine and take enforcement action against national banks and their operating subsidiaries."

PIA in the past has clashed with the OCC in court challenging its moves to stop state regulations governing bank insurance sales.

John D. Hawke Jr., the Comptroller of the Currency, said the state laws now at issue were preempted for the sake of effective and efficient supervision.

National banks, he said, are already subject to a comprehensive set of federal requirements, and the overlay of multiple state law standards would impose unnecessary and excessively costly burdens.

"When national banks are unable to operate under uniform, consistent and predictable standards, their business suffers and so does the safety and soundness of the national banking system," Mr. Hawke said.