Acting Governor Codey Signs Bills to Boost Banking Regulation

TRENTON – Acting Governor Richard J. Codey today signed into law S-2424/A-3981, a bill that strengthens enforcement powers at the Division of Banking and A-3176/S-1760, a bill that creates a stable source of funding for the Division.

“These two bills are great news for consumers of our state-chartered banks,” said Codey. “These laws provide the Division of Banking with the resources and tools to further protect consumers.”

Codey signed the bill during a public ceremony at the State House where he was joined by Banking and Insurance Acting Commissioner Donald Bryan and Division of Banking Director H. Robert Tillman. Bryan and Tillman said the new laws will give the Division a more solid financial base and stronger powers to issue fines and remove directors, officers, employees and major stockholders from regulated depositories. The laws apply to all state-chartered banks, savings banks and savings and loan associations.

Banking enforcement bill sponsors include Sen. Raymond J. Lesniak (D-Union), Sen. Gerald Cardinale (R-Bergen), Assemblyman Neil M. Cohen (D-Union) and Assemblyman Christopher Bateman (R-Somerset). Banking funding bill sponsors include Sen. Barbara Buono (D-Middlesex), Sen. Leonard Lance (R-Hunterdon), Assemblyman Joseph Cryan (D-Union) and Assemblyman Joseph R. Malone, III (R-Burlington).

“With dedicated funding, the Division's resources would be completely funded by industry, without cost to the public or the State's General Fund,” said Bryan. “The enforcement bill strengthens the Division's statutory authority which will ultimately help consumers.”

New Jersey's financial services market is among the top ten in the nation. The new banking laws will provide a more predictable funding source for the Division. A steady funding source and broader statutory authority will help the Division in its enforcement and regulation efforts aimed at maintaining a strong, stable and competitive financial services market.

“When economic conditions are bad, financial institutions may become vulnerable and consumers may need more protection. Regardless of economic fluctuations, the Division will have the financial resources to regulate its industries and the authority to take action when warranted. These laws will help the Division supervise financial institutions and protect consumers even when economic conditions are bad,” said Tillman.

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