By Damian Paletta
WASHINGTON (Dow Jones)--One-quarter of the U.S. Senate Banking, Housing and Urban Affairs Committee membership is turning over in 2007 as five new Democrats join the panel, and the financial services industry is trying to figure out what these changes will mean.
"Every member has their own set of issues that they are interested in and - frankly - the best way to know them is to just talk to those members," said Wayne Abernathy, a former Senate Banking Committee staffer who is now executive director of financial institutions policy and regulatory affairs at the American Bankers Association.
The infusion of new members, which include two sitting Senators and three freshmen, are a product of one lawmaker's retirement, two members leaving the banking panel to join other committees, and another two members joining because Democrats won the majority in this month's midterm elections.
Joining the committee from other Senate posts are Daniel Akaka, D-Hawaii, and Herb Kohl, D-Wis. Senate newcomers, Democrats Bob Casey of Pennsylvania, Rep. Sherrod Brown of Ohio and Jon Tester of Montana, will fill out the panel.
These states represent vastly different banking markets. For example, there are 279 banks chartered in Ohio and only nine in Hawaii, according to the Federal Deposit Insurance Corp.
"The five new members bring great new experience - and a varied experience - to the committee," said panel member Sen. Jack Reed, D-R.I.
Fellow committee member Sen. Tim Johnson, D-S.D., agreed.
"Two of our newest members are veteran Senators and all five are smart, capable men with a wealth of varied experiences and perspectives to bring to the Senate Banking Committee," he said. "I know they will be able to study fast and pick up the issues, and I look forward to working with them."
The panel has oversight over housing, banking, credit cards, and multiple federal regulators, among other things, and trade groups are scrambling to find out whatever they can about the types of interests each member holds. So far, there isn't much of a paper trail.
"We are doing our own intelligence, and it's a matter of finding out what issues are important to each member," said Diane Casey-Landry, president and chief executive officer of the trade group America's Community Bankers. "It's going to be more work this year."
Sen. Christopher Dodd, D-Conn., a veteran of the committee, will lead the panel, while Sen. Richard Shelby, R-Ala., will become ranking Democrat after spending the last four years as the committee's chairman.
"I intend to try to work in a bipartisan way to make our nation more prosperous and more secure," Dodd said in a press statement. "This is a tremendously important committee and I look forward to working with these new members and all of the Republicans on the committee to move our nation forward."
Akaka Has Some Background On Banking Issues
Akaka, 82, has served on the committee before during his 16 years in the Senate and he has remained interested in banking-related issues since leaving the panel in 2002. In fact, of the 111 bills he introduced over the last two years, three focused on hot-button financial services issues. They would have created more disclosure about the relationship between brokers and mutual fund companies, created grants to provide low-cost loans, and outlawed certain payday loans.
"As a member of the Senate Banking Committee, I will continue efforts to increase financial literacy, consumer protection, and expand economic empowerment opportunities for families," Akaka said in a statement to Dow Jones Newswires.
His spokeswoman said he will also work on combating predatory mortgage lending, bringing people into mainstream financial institutions, and improving disclosures on remittances and other banking products.
Kohl, the other Senate veteran to join the panel, owns the Milwaukee Bucks professional basketball team and was first elected in 1988. He sits on two of the Senate's most powerful panels, the Appropriations and Judiciary committees.
"I've been in business all my life," Kohl, 71, said in a statement. "I'm looking forward to working with Sen. Dodd and our colleagues on the Banking Committee on issues that impact businesses big and small in Wisconsin and across our country."
Three Freshmen - Brown, Tester, and Casey - Join Panel
Less is known about the banking interests brought by the other members.
Brown, 54, is currently in the House of Representatives where he serves on the House Energy and Commerce Committee, which occasionally focuses on financial services and consumer protection issues. First elected in 1992, his main focus on the House committee has been with pharmaceutical and other health-related issues, according to a review of legislation he has introduced.
"We have not had the opportunity to work with him based on his prior appointments," said Bob Palmer, president and chief executive officer of the Community Bankers Association of Ohio. "Those committees have not been on our radar screen."
Tester, 50, served as president of the Montana Senate before unseating Republican Conrad Burns for the U.S. Senate. Previously, Tester has been a music teacher and a "butcher operator," according to his election Web site. He still operates the family farm.
Observers said less is known about his perspective on banking issues, though expectations are high for some.
"We're excited to have him on the banking committee," said Steve Turkiewicz, president and chief executive officer of the Montana Bankers Association. "Sen. Tester will bring a very strong voice for the rural community banks."
Turkiewicz said he has worked with Tester before, but not narrowly on banking issues. He said Montana banks are often involved in other state issues, such as energy and agriculture, because the banks depend on the successes of these other industries in order to prosper.
"He was always there with an open ear and gave us the opportunity to make our presentation and make our position known," Turkiewicz said. "Sometimes he was with us, and sometimes he was not. But in terms of his operations, his open-door policy, it was first rate."
Lobbyists and other observers will also be watching Senate newcomer Casey, 46. As Pennsylvania Treasurer, he represents a state that has several large regional banks, including PNC Financial Services Group Inc. and Mellon Financial Corp. Casey beat out Sen. Rick Santorum, R-Pa., a member of the Senate Banking Committee.
Casey spent two terms as state Auditor General before becoming Treasurer.
To be sure, most interviewed for this article said the new members will have plenty of time to catch up because many other lawmakers on the committee - both Democrats and Republicans - have vast experience in the issues.
"The key is Dodd's leadership," Reed said. "I think he'll be very collegial and open to participation on both sides of the aisle."
