Yesterday, the U.S. House Banking Committee defeated amendments that
would have gutted provisions in law to restore state powers to protect
consumers of national banks. Instead, the Committee approved compromise language
that, while not as expansive in the protection of state legislation as
the Obama administration had urged, is still a significant victory
overall against large financial interests. By a vote of 29-38, the
committee defeated a proposed amendment by Rep. Jeb Hensarling (R-Texas) that would have preempted all state regulation of national financial institutions.