Gov. Gregoire’s statement on financial market turbulence

Washington state takes steps to police lenders and protect consumers

OLYMPIA – Gov. Chris Gregoire issued the following statement on turbulence in the financial market:

“Like all working families across the nation, I am very troubled and concerned by the recent failures of financial institutions on Wall Street. And like my fellow Washingtonians, I am saddened and disappointed that one of our state’s greatest corporate citizens, Washington Mutual, which grew from a small Seattle savings institution into one of the nation’s largest lenders, may be sold.

“The financial turmoil is evident that the federal government has failed to police the nation’s financial system and allowed the current situation to worsen— hurting Washington working families and Washington’s economy. Despite this, Washingtonians should be reassured that our state is prepared to weather this storm.

“While we cannot control national economic policies, we in Washington state continue to take action to police lenders and to protect consumers. Washington state’s bank examiners are working with state-regulated banks to make sure they are well capitalized, safe and sound. Where they see concerns, they impose stricter requirements to ensure the financial institutions are sound. Consumers can be assured that the FDIC stands ready to insure their deposits up to $100,000.

“We continue to aggressively police bad actors that harm consumers — from Countrywide Financial whose license we revoked this summer, to the securities dealers we recently fined for misleading investors.

“State insurance regulators are making sure that insurance companies have the money necessary to pay claims.

“Washington has been a leader in mortgage lending reform. Our task force on homeowner security last year recommended and the Legislature enacted new lending regulations, consumer protections and requirements for disclosure to consumers. We enacted mortgage rescue scam prevention legislation to stop crooks from preying on distressed homeowners. We put into place homeowner counseling services that have helped more than 2,000 homeowners facing foreclosure or looking to buy homes.

“I agree with New York City Mayor Bloomberg’s assurance that if we continue making the smart long-term investments and continue managing our resources responsibly and conservatively, then our best days are yet to come.”