The new banking regulations

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This Congress is really doing right for their constituents if by constituents you mean the large banks. From Breitbart's Big Government:
Dodd Bill�s Hidden Target: Community Banks
Sen. Chris Dodd�s financial regulatory reform bill, on which the Senate is slated to take a cloture vote this afternoon, has been the subject of much criticism of late, primarily for what opponents say amounts to a de facto institutionalization of �too big to fail� with regard to the biggest power players in the financial sector.

However, Capitol Confidential has learned that there is another, equally troubling aspect of the bill that observers say is going unnoticed in the debate surrounding Dodd�s proposals: Its hammering of community banks. Relatively small institutions compared to the names often cited in the news, community banks typically operate in small towns, urban neighborhoods or the suburbs. Their remit usually involves funding small businesses that require credit in order to operate payrolls and to expand, and lending to families financing home purchases or college. Many of those familiar with the banking industry, overall, say that community banks bore little to no responsibility, on balance, for the financial meltdown that occurred in 2008. Nonetheless, an analysis of the Dodd bill indicates that if it passes, community banks will be subject to a whopping 27 new regulations that one individual who has worked with banks professionally and is closely tracking the legislation says �could threaten to put many community bankers out of business, thus reducing competition in the banking sector overall, and diminishing consumer choices.�

That individual further asserts that while the bigger, Wall Street banks will likely be able to adapt to the bill (though their efficiency and ability to compete internationally could take a knock), the community banks will not�potentially making the system more risk-prone, also.

At some community banks, staff already work with what can be 1,000 pages or more of regulation with which they must comply daily. The Dodd bill would notably add to this, and observers say its 27 new regulations would, were the bill passed and signed into law, vastly increase administrative costs to banks, and diminish their ability to provide valuable customer service by focusing employees� attention on compliance, rather than meeting customers� needs. One example of such new, burdensome regulation might be the requirement that banks ascertain upfront whether small businesses seeking loans are women or minority owned, and then handle that information in ways that could potentially prove cumbersome in terms of internal administration. Another would be the requirement that banks itemize each loan according to 12 specific criteria, in addition to others that the Consumer Financial Protection Bureau (CFPB) may deem appropriate.
This new socialism, this social justice instead of rules of law -- this is not about treating US Citizens fairly, this is a pure naked power grab by big business and the political machine and if they get away with it, it will take a long long time to undo. Look at the shit that Obama et. al. are piling on Goldman Sachs. This is just for show -- Obama and Goldman Sachs are in bed with each other. Rahm Emanuel worked for Goldman Sachs Goldman Sachs was Obama's largest political contributor in 2008 ($996,595) Goldman Sachs CEO has visited the White House at least four times and has met with Larry Summers, Obama's top economic adviser. Gregory Craig, a former White House counsel who served during the first year of Obama's presidency is now (drumroll) working for Goldman Sachs. The list goes on and on and on... The thing that gets me is that the people in Washington believe they are pulling something over on us and they are not. 2010 and 2012 will be interesting...

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This page contains a single entry by DaveH published on April 26, 2010 8:22 PM.

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