WASHINGTON,
D.C. – The House tonight approved U.S. Representative Jan Schakowsky's
(D-IL) pro-small business amendment to HR 10, the Financial Services Act.
HR 10 will allow financial institutions, such as banks, insurance companies,
and securities firms to merge.
"My
amendment is a small victory for hardworking entrepreneurs and farmers
in a bill that benefits big banks, Wall Street, and insurance company executives.
Safeguarding the interests of small business owners is essential to the
continued growth of our economy and my amendment is a common sense approach
that will help us preserve that interest," Schakowsky said.
Schakowsky's
amendment requires the Department of Treasury, in conjunction with Federal
bank regulators, to conduct a study to determine the impact this bill will
have on the ability of small business and farms to gain access to credit
and capital. The results of the study must be presented to Congress
within five years, along with suggested legislative and regulatory changes
to aid small business and farm lending.
Small
businesses employ 53 percent of the workforce and currently receive 67
percent of their credit from banks.
"In
light of financial modernization and mega-financial institutions, we must
determine the impact this legislation will have on the ability of small
businesses and farms to have continued access to start-up capital, loans,
and credit," added Schakowsky.
Schakowsky,
however, was disappointed that the House voted to approve HR 10, a bill
that does not include adequate pro-consumer, pro-community measures.
Schakowsky said that the bill failed to protect consumer privacy, lower
ATM fees, prevent insurance company redlining, expand the Community Reinvestment
Act and provide affordable banking services.
"This
is a great bill for big banks, big insurance companies, and big securities
firms who now will be allowed to merge. Thanks to HR 10, these powerful
new conglomerates can make even more money and boost their profits even
further by sharing consumers' most private financial transactions and medical
records," Schakowsky added.
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