AG’s letter give thumbs-down to Cuomo proposal to expand DFS powers ⋆ Epeak . Independent news and blogs
State Attorney General Eric Schneiderman thinks Gov. Andrew Cuomo’s bid to expand the civil law enforcement authority of the state Department of Financial Services represents “a wholly unnecessary overreach by the Executive (that) … should be rejected by the Legislature.”
Schneiderman, like Cuomo a Democrat, detailed his objections Tuesday in a letter to the governor and legislative leaders, who will be negotiating Cuomo’s proposed changes before the March 31 deadline to pass the state budget.
DFS, an executive regulatory agency created at Cuomo’s suggestion through the 2011 merger of the old state Insurance and Banking departments, is currently required to refer potential violations of the laws covering those sectors to the attorney general, an appropriate agency or district attorney. Cuomo is seeking to give the agency its own litigating power over those areas, as well as over student loan providers.
Cuomo’s spokesman Rich Azzopardi defended the proposal.
“DFS has proven itself to be a powerful and widely respected financial regulator and we believe we should have more cops on the beat, not less,” he said. “Turf battles are counterproductive to effective policing of the market.”
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Here’s the letter: