Posted on 07/24/2015 8:36:25 AM PDT by george76
financial reform increases staffing costs. Small banks are struggling to comply with the Dodd-Frank Act, which was passed to regulate the financial industry in the wake of the 2008 financial crisis, said Rep. Scott Tipton.
The Republican from Cortez received some national attention this week for challenging Federal Reserve Chairwoman Janet Yellen to support his plan to ease the burden of Dodd-Frank on small banks.
...
Mike Burns, president of Alpine Bank for the Southwest region, said in a phone interview that Dodd-Frank is creating head winds.
“We really want to focus our time and energy in supporting the communities in which we operate,” he said. “This (dedicating staff to ensure compliance) creates a distraction for us.”
...
payroll costs have increased as the bank prepares for increased regulations in the future stemming from the Dodd-Frank Act.
“Only two-thirds of the law has been implemented. We’re ramping up for what’s coming,” he said.
Tipton, acting on concerns Burns expressed to him, asked Yellen to support his bill requiring regulators to consider the consequences of their legislation on smaller banks.
(Excerpt) Read more at durangoherald.com ...
From what I’ve heard the “Federal red tape” that is causing distress to small Colorado banks are the barriers that keep them from handling accounts for the burgeoning pot business there.
Banks with a federal charter or Federal insurance likely do not want to lose either by knowingly violating federal laws.
Landlords who might rent commercial spaces and insurance companies have similar issues.
Duh! That was the plan. They don’t want small banks.
The number of banks in the U.S. has dwindled to its lowest level since the Great Depression ... falling below 7,000 .. from a peak of more than 18,000.
http://www.wsj.com/articles/SB10001424052702304579404579232343313671258
There are many aspects of banking affected by Dodd-Frank. What virtually each of the vast number of changes the regs have in common is that they raise the cost of banking transactions to the customers, raise compliance costs of the banks (giving a competitive advantage to large banks that are set up with huge bureaucracies anyway) or pretty much making certain products to be so risky or costly that they are no longer available to the customer.
We used to be able to turn around, in my community bank, a mortgage in 3 days. Now it takes a minimum of 10 - 12 days. New appraisal evaluation regulations are absurd and cost the consumers big bucks . . . not the fault of banks. We used to be able to offer a 2nd mortgage on a home for $10,000 to $50,000 that would provide money where interest would be tax deductible. The cost to the banks to process such loans are so high now, thanks to Dodd-Frank,that we can’t even offer these kinds of loans. They used to be a staple product.
In my opinion, regardless of the reasoning they used, Dodd-Frank was passed for the express purposes of running community banks out of business and restricting consumer access to reasonably priced credit. That in turn hurts small independent business more than anybody, but it hurts regular, everyday consumers, too.
What main street DOESN’T SEE is the vast heap of bank regulation generated by the OCC, the Federal Reserve and the FDIC, et. al. that is required by Dodd-Frank. It is mind boggling.
Democrats passed this crap. It hurts the little guy the most. Nearly ALL of it needs to be repealed.
It is pure evil at work. As Napoleon Bonaparte once said, “There are so many laws that none of us are safe from hanging.”
That is what the Leftists, including those in the Republican Party, have given us: a means to tightly control people. And it is not just confined to the banking industry. Yep, pure evil at work.
The plan has always been to try to get down to only 4-5 large banks. So far they just can’t quite get r done but I was in the banking/mortgage industry for 30 years and even in the 80’s it was a poorly kept secret.
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