Tipton asks board to consider small banks ( Colorado Congressman )

Grand Junction Media ^ | February 2, 2016 | Gary Harmon

[george76]

A coming change in accounting standards could do irreversible damage to community banks, U.S. Rep. Scott Tipton, R-Colo., said in a letter to the Financial Accounting Standards Board.

An accounting-standards update due to be issued by the board would change the way all lenders set aside reserve funds in anticipation of possible losses.

The board, wrote Tipton and Rep. Patrick Murphy, D-Fla., should take "utmost caution" in proceeding because it has the potential to "irreversibly damage community banks' and credit unions' ability to continue to adequately serve their customers/members and communities and sustain the economic recovery."

...

Tipton, a member of the House Financial Services Committee, asked that the accounting-standards board consider the effect of the rule on general credit availability and growth, as well as more practical alternatives to the plan.

The board also should take into account the size of institutions, Tipton wrote.

"Approaches that may be appropriate for a large lender with ample investment in technology and economic forecasting may not be appropriate for smaller lenders with smaller overall risk profiles, such as many community banks and credit unions, which already face excessive regulatory burden," the letter said.

The letter is signed by 62 members of the House.

[george76]

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.freerepublic.com/focus/f-news/3316138/posts?page=5#5

[RatRipper]

In the early 1980’s when I became a state bank examiner, there were over 14,000 commercial banks in the US. I now work for a community bank.

The combination of Dodd-Frank legislation, the regulatory enforcement attitude and absurd accounting industry standards and changes have hit community banks hardest by vastly increasing compliance costs, limiting credit availability to consumers and raising the cost of borrowing to consumers. Worst thing about it: it truly is a commie plot.

[george76]

Crushing small community banks, family doctors, and other small businesses thru excessive regulations is one of the Rockefeller / George Soros / Goldman Sachs / international socialist new world order goals.