Today marks the fifth anniversary of the enactment of the Dodd-Frank Act - a date which will live in infamy for community bankers. Five years and tens of thousands of pages of rulemakings later, we continue the fight to protect community banks from the blowback caused by the misdeeds of those deemed “too big to fail.”
As reported in last week’s issue of the Bottom Line, IBAT took to Capitol Hill again to push for a more balanced, reasonable and workable regulatory approach for community banking. While a frustrating process, we do believe there is progress on several fronts as the Senate Banking Committee is working to craft a compromise agreement to its financial reform legislation and the House Financial Services Committee plans to mark up a menu of regulatory burden relief bills at the end of the month. Most encouraging is that in our meeting with FDIC Vice Chairman Tom Hoenig, we were pleased to hear that his “bifurcation” plan was being discussed in Congress.
Further, Congressman Roger Williams introduced H.R. 3048 last week. We were pleased to have played a role in the introduction of this bill. This concept was brought to us by our counterparts in the credit union association, whose members are dealing with many of the same frustrations and expenses of regulatory burden as we are. As detailed in the summary, the CFPB has the authority under Section 1022 of Dodd-Frank to exempt smaller (under $10 B) institutions from particular rules. This bill would require the CFPB to affirmatively include small institutions, based upon justification and evidence of patterns or practices, or they would otherwise be exempt. We appreciate the efforts of Jeff Huffman of the Texas Credit Union Association, and Congressman Roger Williams and his outstanding staff.
If you have the opportunity to invite your respective members of Congress to your bank over the August recess to see firsthand the ridiculous level of compliance expected of community banks, you are encouraged to do so.
Photo (l-r): IBAT Executive Vice President Steve Scurlock and President and CEO Chris Williston witness the signing of H.R. 3048 by Congressman Roger Williams.