Previous Story
House fails to override veto on bank bill
|
Posted on Apr 02 2009
The House of Representatives failed Wednesday to override the acting governor’s veto of a bill aimed at establishing minimum requirements for banks and financial institutions where government deposits are placed.
H.B. 16-4 HD 4 proposes that banks meet minimum requirements before any public funds are deposited into them. Under the bill, funds amounting to less than $100,000 must be deposited only with FDIC-insured banks. All of the deposited funds in excess of the insurance coverage should be secured by bank assets valued at all time at 100 percent of the excess funds. Bank assets that serve as collateral for the public funds should be in the form of U.S. Treasury bonds and U.S. government agency securities.
The bill earlier passed the House and Senate but acting Gov. Timothy Villagomez vetoed the bill.
The House of Representatives needed 14 votes to pass the override. However, only 12 members voted in favor of an override.
Vice Speaker Joseph Deleon Guerrero, the author of the bill, said he was disappointed the House did not muster enough votes.
“Unfortunately, a good piece of legislation was defeated, a piece that would provide some assurance that government funds are protected,” he said.
Questions arose when Rep. Ray Yumul abstained from voting, saying he had a conflict of interest because he heads a special committee dealing with the Retirement Fund.
“As chairman of a working group to try to bring the Retirement Fund into solvency—not insolvent—but in a tough situation, this is one issue that might add on,” he said.
Deleon Guerrero said the Fund supported the bill and does not affect the Retirement Fund.
Yumul, who initially voted in favor of the bill before it was vetoed, said issues have since been brought up over stability and the disadvantages to businesses.
Rep. Edwin Aldan and Rep. Oscar Babauta voted no on the override.
Floor leader Joseph Camacho, Yumul and Rep. Stanley Torres abstained. Rep. Ed Salas, Rep. Heinz Hofschneider and Rep. David Apatang were absent.
