Bush favors exam fees for state banks

Northwestern Financial Review, Apr 1, 2001

President Bush's budget plan includes a proposal to impose fees on state-chartered banks to cover the cost of exams. Industry observers were surprised by the proposal, as most Republican lawmakers have opposed such fees in the past. The Comptroller of the Currency, which is a division of the U.S. Treasury, long has supported the idea because national banks are charged for exams.

Comptroller John D. Hawke Jr. contends the disparity is unfair and has caused some banks to switch charters. Former President Clinton included the fee in each of his budgets, but Congress always removed the fee before passing the budget.