TRENTON – A bill sponsored by Senator Raymond J. Lesniak which would change the supplemental protections put in place on government bank deposits in order to protect banks participating in the protection program and enhance protections for municipalities and other government units was unanimously approved by the Senate Commerce Committee yesterday.
“The effects of the crisis gripping our world economy have been profound and far-reaching, but nowhere are we seeing a bigger impact than in the financial services sector,” said Senator Lesniak, D-Union. “The bank industry has been significantly destabilized as a result of the near-collapse of our economy, and a little pressure in either direction could send the whole house of cards tumbling to the ground. This legislation puts safeguards in place to make sure we don’t inadvertently set off a chain reaction through a program intended to reimburse taxpayers should a bank fail.”