Small Bank Regulatory Relief is Victory for Main St.
WARWICK, R.I. – Today the Economic Growth, Regulatory Relief, and Consumer Protection Act was signed into law, freeing small and mid-size community banks and credit unions from the complex and costly web of red tape imposed on them by the 2010 Dodd-Frank Act. Sixteen Democratic Senators joined the majority of Republicans in voting in favor of the bill, including Sen. Kaine of Virgnia, Sen. Nelson of Florida, Sen. Bennett of Colorado, Sen. Stabanow of Michigan, and New Hampshire’s Sen. Hassan and Sen. Shaheen.
“I am encouraged to see this bipartisan legislation signed into law today that gives relief to our small and mid-sized community banks,” said Flanders. “Unfortunately for Rhode Island, their representative in the U.S. Senate, Sen. Whitehouse, by voting against this bill, has failed them once again on the issues that matter most with his agenda of radical partisanship.”
Since Dodd-Frank was signed into law in 2010, over 20 percent of community banks have been forced to shut down as they were burdened and ensnared in the same complex web of red tape and regulation designed to place stricter regulatory scrutiny and higher financial requirements on the large Wall St. banks that triggered the 2008 financial crisis. Community banks and credit unions, facing new banking restrictions and unable to afford the armies of lawyers and accountants needed for costly compliance measures, were forced to shut down or scale back lending to the community.
“The important core elements of Dodd-Frank remain in place to ensure high-risk financial activity doesn’t precipitate another financial crisis,” said Flanders. “However, even the law’s titular co-sponsor, Barney Frank, admitted it went too far; indeed, sixteen other Democrats currently serving in the Senate agree. Time and again, Sen. Whitehouse has demonstrated he is incapable of acting in Rhode Island’s best interest.”
“Community banks are engines of growth for local businesses and have a direct stake in the communities they serve,” continued Flanders. “For many Americans they are the only way they can access the capital they need to start and grow a business or secure a mortgage. Today is a victory for Main St., small businesses, and our Rhode Island communities.”