September 6, 2005
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Remarks by Secretary Snow at Meeting with Banking Regulators

Thank you for coming. We've just concluded a thorough review of actions being taken by the banking industry to address the disaster recovery effort. I've heard from each of the functional regulators for the banking industry and am pleased to say that while there are challenges, the United States' financial system is functioning well during this time of national emergency and tragedy.

The number-one priority of every agency represented here today, and I believe of every American right now, is to aid and assist the victims of Hurricane Katrina and help them rebuild their shattered lives.

Katrina is a disaster on every level imaginable; the immediate human needs are heartrending. Over the long term, I'm confident that the residents of places like New Orleans and Gulfport Mississippi and southern Alabama will recover. We picked ourselves up after 9/11 and other catastrophic events, and we have the will and the resources and the resolve to do so again.  I am confident we will; it's the spirit of Americans to do so.

As President Bush said this weekend, "the tasks before us are enormous, but so is the heart of America."

We are fortunate that we are dealing with this situation from a position of economic strength. The fact that our underlying economic fundamentals are so solid enhances our ability to deal with this disaster.

A crucial part of getting people's lives back to normal will be ensuring they are able to get access to banking services. There is an ongoing, comprehensive effort to ensure that the financial system continues to work. The system possesses credit liquidity, credit is available, and the necessary infrastructure is intact or being restored.

Efforts are being made, across the board, to identify customer needs and to meet those needs. Each of the regulators here today are asking the institutions they oversee to consider all reasonable and prudent steps to assist customers' cash and financial needs in areas affected by Hurricane Katrina.

Many financial institutions are implementing contingency plans involving a variety of actions that will help the people of the Gulf Coast. From waiving ATM fees and easing restrictions on cashing out-of-state and non-customer checks and waiving overdraft fees as a result of paycheck interruption, banks and credit unions are doing what they can to ensure that victims have the cash resources they need to survive this difficult time, financially.

Treasury has been working closely with the insurance industry which has thousands of claims adjusters who are ready to enter the area and begin to help people restore their lives.

Credit institutions are taking steps such as waiving late fees for credit card and other loan balances, easing credit card limits and credit terms for new loans and delaying delinquency notices to the credit bureaus.

I appreciate the steps that these regulators and their constituents are taking to make sure that hurricane victims have access to cash and credit, and to ease worries about things like bill payments and credit status.

The cooperation of this group of regulators, and the institutions they govern, is critical as the region and the country recover from this catastrophe. The ability of the financial system to function, and to function well, is a key component of a resilient economy.

Before I take your questions, I'd like to repeat that I am confident that the American economy will once again prove its incredible vigor and resiliency. The dedication and compassion of the financial industry is necessary, and it is unmistakable on this day.

Thank you again for coming, and I'll take your questions now.