Monday, July 12, 2010

Bankers Warn of Cost of New Regulations

Oy.

Wisconsin’s top bank leaders warn that the biggest rewrite of banking laws since the Great Depression will raise the cost of financial services for the public without addressing the root causes of the financial crisis. Bankers completing the Wisconsin Bankers Association (WBA) semiannual Bank CEO Economic Conditions Survey also report that demand for commercial and other benchmark loan categories remains weak throughout the state.

When asked how the soon-to-be enacted federal financial regulatory reform bill – commonly referred to as the Dodd-Frank Bill – will affect their bank, the 114 survey respondents overwhelmingly said it will increase compliance costs, limit revenue opportunities and may force them to charge for services that are currently free.

Bankers also expressed concern that the increased capital requirements in Dodd-Frank may reduce lending and slow the economic recovery.

Bankers further take issue with claims that consumers will be better protected as a result of Dodd-Frank. According to one banker, “[The] reform should have been directed at those who caused … the problems.” Another said Dodd-Frank will “generate a negative impact on both the bank and our customers.”

In stark contrast to how President Obama and federal lawmakers sold the regulatory reform package, Wisconsin bankers believe “Main Street” community banks will be hit harder by Dodd-Frank than the mega “Wall Street” firms. It will “place us on the endangered industry list,” a banker warned. Another said “larger organizations are better able to absorb the costs of compliance.”

(4) Comments
Posted by Owen at 2041 hrs
Economy + Politics + Politics - General + Politics - Wisconsin

  1. Our incompetent President once again completely misses the mark on a crisis.

    The meltdown 18-months ago called for bringing back Glass Steagel, reducing leverage ratios, moving the government slowly but surely out of the mortgage guaranty business and putting all derivatives on a public exchange. 

    Instead we get 2,000 pages of crap that in the end will put the small and mid size banks out of business while protecting a govt. oligopoly of the mega banks who are now state sponsored anyways.  And too big to fail still lives on.

    Posted by .(JavaScript must be enabled to view this email address) on July 12, 2010 at 2303 hrs


  2. The Bankers are right. This is big goverment diverting the blame on the private sector when they caused the problem.

    Posted by .(JavaScript must be enabled to view this email address) on July 13, 2010 at 0654 hrs


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  4. Far from being incompetent, there is a devious genius behind this bill… as there was behind Obamacare and the Cap and Tax legislation. The bill is being touted as a punishment to the evil bankers on Wall Street, typically pitting the have-nots against the haves. What it really does is place the government firmly in charge of finance, lending, and banking transactions, just as Obamacare was made to break private control of healthcare and Cap and Tax was designed to control the distribution of energy and the output and production of our industrial sector.

    Just another power grab… never was intended to help the little guy… and it clearly won’t.

    These folks are a decidedly dangerous bunch.

    Posted by .(JavaScript must be enabled to view this email address) on July 13, 2010 at 1349 hrs


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