Eric Dash of the New York Times writes - “Wall Street’s main lobbying arm has hired a top Supreme Court litigator to study a possible legal battle against a bank tax proposed by the Obama administration, on the theory that it would be unconstitutional, according to three industry officials briefed on the matter.

In an e-mail message sent last week to the heads of Wall Street legal departments, executives of the lobbying group, the Securities Industry and Financial Markets Association, wrote that a bank tax might be unconstitutional because it would unfairly single out and penalize big banks, according to these officials, who did not want to be identified to preserve relationships with the group’s members.”

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Stacy Shackford reports in today’s Ithaca Journal - “Local credit unions have been lifelines to many small businesses during the economic downturn, and Sen. Charles E. Schumer, D-N.Y., wants to expand their ability to help.

He was in Cortland on Wednesday to announce his plan to introduce legislation that would allow credit unions to loan up to 25 percent of their total assets.

This could result in an additional $10 billion in loans available for small businesses in the first year, according to estimates by the Credit Union National Association.”

To read the rest of the story click here.

Senate Insurance Committee Chairman Neil D. Breslin is the guest speaker at The Business Council Financial Services Committee meeting on Tuesday, January 19, 2010 at 4:30 pm at the Crowne Plaza, Albany, NY. The Financial Services Committee meeting coincides with The Business Council Issues Expo (formerly Annual Reception).

The Business Council’s Financial Services Committee is comprised of over 150 companies. The topics to be discussed are the 2010-11 State Budget, key issues of the Senate Insurance Committee, medical malpractice insurance reform, credit default swaps and other issues.

Senator Neil Breslin is currently serving his seventh term as New York State Senator. He represents the 46th District, which consists entirely of Albany County. Senator Breslin serves on the Agriculture, Banks, Codes, Education, Finance, Judiciary and Labor Committees. Senator Breslin also serves as a member of the Executive Committee and is the former Chair of the State/Federal Relations Committee of the National Conference of Insurance Legislators (NCOIL).

To register for this event, please click here. For information or questions, please call Walter Pacholczak at 518/465-7511 x219 or email walter.pacholczak@bcnys.org.

Jonathan D. Epstein of the Buffalo News writes -”HSBC North America Holdings will move its legal headquarters from Illinois back to New York City in January, as the British banking giant refocuses its U. S. strategy on basic banking and credit cards, not consumer finance.

The umbrella holding company for HSBC Bank USA, HSBC Bank Canada and the remaining pieces of HSBC Finance will now be based out of HSBC Bank USA’s headquarters at 452 Fifth Ave. in Manhattan.

Brendan P. McDonagh, HSBC Group managing director and North America chief executive officer, will relocate from Mettawa, Ill., to New York as part of the move, which brings the focus of the London-based global bank back to the Empire State for the first time since 2003.”

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Congressman Scott Murphy was joined by local business leaders in unveiling new legislation to help small businesses create jobs. The Business Checking Fairness Act would repeal a law dating back to the Great Depression that prevents small businesses from earning interest on their business accounts. Unlike individual checking accounts that earn interest on individual deposits, banks are prohibited from paying interest on business checking accounts by the outdated Banking Act of 1933. The additional available capital for small businesses would promote growth and job creation.

“This is one of those outdated laws that has no business being on the books. I look for common sense solutions to problems, and this law making it illegal for small businesses to receive interest on their checking accounts simply doesn’t make sense,” said Rep. Murphy. “The Business Checking Fairness Act would increase competition among banks and lift an unfair burden from our small businesses during these tough economic times.”

To read more about the legislation click here.