Date: 04/21/2010
Final
Banking Commission Briefing
HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
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01:36 PM -- Banking Commission Briefing
Barbara Kelley, Executive Director of the Department of Regulatory Agencies, and the new banking commissioner, Steven Strunk, came to the table. Ms. Kelley talked about the department's search for a new commissioner that has taken about 17 months. She explained that Commissioner Strunk has 35 years experience in the banking industry and talked about his background.
01:40 PM
Commissioner Strunk addressed the committee and talked about his experience. Representative Rice talked about Mr. Joseph, who was the acting banking commissioner during the vacancy, and commended him for his work. Ms. Kelley agreed that he did a wonderful job in the position and would remain in his capacity as the head of securities. Representative Soper talked about the bank closures across the country and asked Commissioner Strunk to address where Colorado falls compared to other states. Commissioner Strunk responded. Representative Balmer asked what issues the commissioner would like to address in his new position. Commissioner Strunk talked about state- and federal-chartered banks and FDIC insurance. Representative Liston asked the commissioner to talk about the various types of banks and the recent bail outs. Commissioner Strunk talked about the recent crisis on Wall Street and about community banks and commercial banks. The commissioner talked about the types of banks that exist including investment banks, community banks, and commercial banks. Representative Liston asked how long the commissioner has been in Colorado, why he decided to come and work for the public sector, and how he ended up in Colorado. Commissioner Strunk responded.
02:05 PM
Representative Soper asked about banking fees and whether the commissioner feels they are too high or whether it will be addressed by the open market or needs to be addressed with legislation. Representative Rice mentioned that typically, there are not many investment banks in Colorado. Representative Balmer talked about the lack of national banks headquartered in Colorado and asked whether the state should attempt to become a regional banking center. Commissioner Strunk responded. Ms. Kelley also responded and talked about a time when Colorado had the opportunity to do so and deliberately decided not to go that route. Representative Rice commented on the fact that most bank exams are joint with state and federal and asked what is looked for at each level. Commissioner Strunk responded. Representative Rice asked the commissioner whether any states choose to not have state-chartered banks. Commissioner Strunk said no states choose this. Representative Rice asked the commissioner to report back to the committee after he has been in the position for a bit and talk about some lessons learned from the Frontier Bank failure.
02:19 PM -- Recess
The committee took a recess.