IIAA Hails Passage of H.R. 10; Calls for Senate Action

N/Ase of Representatives' approval of financial services reform legislation last night is a bold, historic first step toward the creation of a level playing field in the increasingly integrated financial services sector, says <%=company%> (IIAA) president Bud Wilson. N/Ase approved the Financial Services Competition Act (H.R. 10) on a 214-213 bipartisan vote last evening. During hours of debate, House members rejected what the IIAA calls two potentially damaging amendments that it says "would have upset the delicately balanced insurance compromise language and scuttled the reform plan's prospects."

"This is a historic vote not just for Congress but for the 300,000 independent insurance agents across the nation represented by IIAA," says Wilson, chairman of the board of Wilson Insurance Agency, Inc., Chula Vista, CA. "For the first time ever, H.R. 10 would create a level playing field in the financial services industry-a goal IIAA and its members have been working toward for the last 10 years.

"While H.R. 10 is not perfect, it is a positive step in the drive to create parity in the financial services industry," continues Wilson. "Any way you slice it, H.R. 10 is better than the status quo for consumers and small entrepreneurs, like independent agents, who will be able to compete on equal footing with financial services Goliaths when this bill becomes law."

IIAA senior vice president of Government Affairs Robert A. Rusbuldt praised the impressive bipartisan leadership team that shepherded H.R. 10 to passage. Spearheading the effort were Republican Conference Chairman John Boehner (OH), Rules Chairman Jerry Solomon (R-NY), Commerce Chairman Tom Bliley (R-VA), Banking Chairman Jim Leach (R-IA), Commerce Subcommittee Chairman Mike Oxley (R-OH), Commerce Ranking Democrat John Dingell (MI), and Democratic Caucus Chairman Vic Fazio (CA).

"Without the bipartisan leadership team's tireless work on this issue over the last several months, H.R. 10 surely would have met a different fate, probably not advancing this far," says Rusbuldt. "In particular, Republican Conference Chairman Boehner played an integral role as lead negotiator and facilitator. He was a guiding presence on an issue that has proven to be very elusive to Congress. Chairman Boehner and his bipartisan counterparts have achieved something that has eluded Congress for over 20 years-passage of financial reform."

IIAA executive vice president of Public Affairs Paul A. Equale believes the effort will enjoy bipartisan support in the Senate. "Historically, the Senate has passed financial services reform bills while the House has bogged down in jurisdictional turf wars. We now have a golden opportunity to finally pass legislation and the ball is teed up for Senate Banking Committee Chairman Alfonse D'Amato (R-NY) to move expeditiously," says Equale. "We had a bipartisan effort in the House with strong leadership from Chairman Fazio and Mr. Dingell. I fully expect the effort will be bipartisan in the Senate, as well."

In the course of the debate, the House turned away two efforts that would have gutted the insurance compromise language agreed to by IIAA. On an overwhelming bipartisan 306-115 vote, members beat back an amendment by Banking Ranking Democrat John LaFalce (NY) that would have retained legal deference in litigation between federal banking regulators and state insurance commissioners over insurance-related rulings. On a 281-140 vote, members rejected an amendment by Rep. Richard Baker (R-LA) that would have undermined H.R. 10's functional regulation language. Both amendments also contained provisions to expand the amount of business banks could conduct through an operating subsidiary-a proposal supported by the Clinton Administration but opposed by Dingell and a cadre of other House Democrats.

"Defeating both the LaFalce and Baker amendments was key to gaining House approval," says Rusbuldt. "Fortunately, lawmakers voted to keep the delicately balanced insurance compromise language intact."

H.R. 10 now heads to the Senate where Banking Chairman D'Amato is expected to begin work on a modernization plan shortly. "We look forward to sitting down with Chairman D'Amato to begin the process of moving this important legislation in the Senate," says Rusbuldt. "Congress has a great opportunity before it, one that should not be squandered."