Most panelists showed disdain for Durbin and caution toward the new Consumer Financial Protection Bureau at the March 2 House hearing, “The Effect of Dodd-Frank on Small Financial Institutions and Small Businesses.”
The Subcommittee on Financial Institutions and Consumer Credit listened to testimony mainly from leaders of credit unions and small banks.
“The cumulative burden of Dodd-Frank’s rules would demand a massive consolidation on banks’ parts,” said Spirit Bank President and CEO Albert Kelly, according to AdvisorOne.
The site states that Kelly felt the success of the banking sector is tired to the financial health of communities.
Both John Buckley (President and Chief Executive Officer, Gerber Federal Credit Union) and William Cheney (president and chief executive officer of the Credit Union National Association) argued that credit unions are already heavily regulated under Federal Credit Union Act, reports AdvisorOne.
“The additional requirements in Dodd-Frank have created an overwhelming number of new compliance burdens, which will take credit unions considerable time, effort, and resources to resolve,” Buckley said.
Cheney even expressed concern that Dodd-Frank regulations would result in credit union consolidation.
AdvisorOne reports that the only panelist who showed support for Dodd-Frank was Peter Skillern, executive director of the Community Reinvestment Association of North Carolina.
“He said the Act ‘stands up for the little guys’ in the industry, and will provide a ‘level playing field’ for small financial services companies to compete with megabanks and non-regulated financial services companies,” according to AdvisorOne.
Click here to read written testimony from all of the panelists.
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