Cuomo Offers Bills with New Banking Powers; Legislation, Based on Findings of Temporary Panel, Would Let Institutions Sell Insurance

American Banker, April 19, 1984 | Go to article overview

Cuomo Offers Bills with New Banking Powers; Legislation, Based on Findings of Temporary Panel, Would Let Institutions Sell Insurance


ALBANY, NY. -- Gov. Mario M. Cuomo submitted three financial services bills to the New York Legislature on Wednesday. One of them would permit banks to sell insurance and allow insurance companies to enter banking.

The bills encompass most of the 38 recommendations in a report by the Temporary State Commission on Banking, Insurance, and Financial Services, a panel appointed by the governor that studied financial services deregulation for several months.

The legislature is on its spring recess and will not take up the legislation until it returns at the beginning of May.

When the commission's report was released two months ago, it received support from the banking industry and sparked strong opposition from insurance representatives. It is anticipated that reaction to this legislation will follow similar lines.

The legislation, which could act as a model for other states, would:

* Authorize banks and thrift institutions to enter the insurance agency and brokerage business on Jan. 1, 1985.

* Permit banks and thrifts to organize or acquire insurance companies writing various lines of property and casualty insurance on Jan. 1, 1988, and permit such insurance companies to organize or acquire banks and thrifts on the same date.

* Create the Life Insurance Company Guaranty Corp. of New York, which would provide comprehensive protection for New Yorkers who buy life or health insurance from a New York-licensed insurance company.

* Authorize thrift institutions to accept municipal deposits.

* Permit mutual life insurance companies to reorganize under a stock form of ownership.

In submitting the legislation, Gov. Cuomo said passage would provide a climate in which the financial services industries could expand business opportunities and compete more effectively while protecting consumers and their investments.

The proposed legislation contains several consumer safeguards, one of which would require banks and thrifts to offer "lifeline" accounts providing basic banking services at minimal cost to consumers who most need them.

"This legislation would implement an aggressive plan to keep New York in the forefront of the financial services industry and would serve as a model of sound and prudent business expansion, with concomitant consumer benefits," the governor said.

"The commission report recognized that the integration of financial services is a reality, and it set forth recommendations which will help New York's financial industry lead the way in this expanding frontier," he said. Support for the legislation came immediately from organizations representing commercial banks and thrifts. James Murphy, executive vice president of the New York State Bankers Association, called the legislation a "major benefit to the consumer."

Mr. Murphy said it represents a "major purchasing advantage to consumers when insurance is distributed through the branch bank network and other distributing facilities. Consumers today increasingly want to do one-stop financial shopping. Sears, Merrill Lynch, and American Express already have proved that."

He added that under "our banks' estimate of the 30% distribution cost, there will be a significant saving, anywhere from 40% to 50%, which equates to between 12 and 15 cents on every premium dollar being passed on to bank customers who buy insurance from banks," Mr. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Cuomo Offers Bills with New Banking Powers; Legislation, Based on Findings of Temporary Panel, Would Let Institutions Sell Insurance
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    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.