Magazine article American Banker

Calif. Democrats Give Up on Privacy Amendments

Magazine article American Banker

Calif. Democrats Give Up on Privacy Amendments

Article excerpt

The campaign continued Wednesday for legislation that would toughen California's financial privacy laws and for a separate bill that would prevent nonbank companies like Wal-Mart Stores Inc. from acquiring industrial banks in the state.

Lawmakers are scheduled to adjourn Saturday, and a vote on the privacy bill was expected as early as Wednesday evening.

A group of moderate Democrats abandoned a plan to offer amendments that would have weakened the privacy bill and, they said, have attracted more votes for it. One amendment would have allowed banks to continue freely sharing customer information among affiliates. Another would have brought the bill in line with the Gramm-Leach-Bliley Act by exempting publicly available information, such as customer names and addresses, from the state bill's restrictions on data sharing.

Sen. Jackie Speier, a Bay Area Democrat who sponsored the bill, threw cold water on the amendments.

Sen. Speier told the San Francisco Chronicle that she would rather withdraw the bill than accept the amendments.

Sen. Speier told the San Francisco Chronicle that she would rather withdraw the bill than accept the amendments.

"They would cut the heart of the protections we're trying to provide for the consumers out of the bill," she was quoted Wednesday as saying. "It really just throws us back into the arms of that everyone now knows is not worth the paper it's printed on."

Sen. Speier's bill would prohibit financial companies from sharing customers' financial data with third parties unless the customer explicitly authorizes it using the so-called opt-in. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.