[Congressional Record Volume 145, Number 156 (Monday, November 8, 1999)]
[Extensions of Remarks]
[Page E2306]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CONFERENCE REPORT ON S. 900, GRAMM-LEACH-BLILEY ACT

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                               speech of

                         HON. JERRY F. COSTELLO

                              of illinois

                    in the house of representatives

                       Thursday, November 4, 1999

  Mr. COSTELLO. Madam Speaker, I rise today in strong opposition to the 
Financial Services Modernization Act. This bill was brokered by the 
Republican leadership, in a partnership with the large financial 
services lobbyists, to the benefit of enormous corporations at the 
ultimate expense of the American consumer.
  This bill will expedite the creation of mega-bucks malls--the one-
stop shopping of the financial world. This will hurt consumers because 
as financial services providers consolidate, competition will decline 
and consolidate decision-making and services among fewer service 
providers. Should one of these enormous institutions suffer a financial 
decline, we could see calls for a bailout that will recall the savings 
and loan debacle of the 1980's, with taxpayers footing the bill.
  I am also concerned of the effects that the Community Reinvestment 
Act provision may have on certain banks in my district. By reviewing 
small banks which provide service in underserved communities only once 
every 4 or 5 years, there is no guarantee that these banks will 
maintain their lending standards to these communities. A two-year 
review enforced this. Underserved communities need to be ensured of 
financial assistance, and this bill does not provide that guarantee.
  Most frightening, however, is the effect the privacy provisions will 
have. Under this bill, financial institutions have access to and 
distribute our personal information, including our bank and brokerage 
account or insurance record information, to all the institution's 
divisions and affiliates, without the customer's permission. In 
addition, banks will share our consumer information with third parties 
unless the consumer explicitly tells the financial institution not to. 
The walls protecting our financial privacy and other personal 
information are slowly being eroded.
  While the Financial Services Modernization Act may modernize the 
financial world, it does so at the expense of the consumers. I cannot 
support this legislation.

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