Community Banks Support Reforms that Hold Wall Street Accountable
April 22, 2010 -- On April 19, 2010, the Independent Community Bankers of America (ICBA) issued the following statement by ICBA Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., and ICBA President and CEO Camden R. Fine.
“It is time to set the public record straight. ICBA represents nearly 5,000 Main Street community banks, and we support strong reforms that hold accountable Wall Street and systemically dangerous financial firms and unregulated entities whose risky behaviors led to this crisis.
“Recently, many statements have been made about the community bank position on the Senate Banking Committee’s version of a regulatory reform bill. ICBA has repeatedly stated that the status quo is not acceptable. Among other regulatory changes, ICBA supports strong resolution authority that has but one purpose, and that is to wind down failing institutions. We support basing FDIC deposit insurance premiums on total assets, not domestic deposits, so that the too-big-to-fail banks pay their fair share. We support enhanced enforcement of the lightly regulated and unregulated nonbank financial services companies—they should play by the same rules as community banks. ICBA supports a stronger role for prudential bank regulators in the creation and enforcement of any new consumer-protection rules.
“ICBA speaks for nearly 5,000 community banks, and we believe the regulatory reform discussion should be based on substance, not rhetoric. ICBA will work to ensure that our policy recommendations are accurately represented as this process moves forward. Those who do not want a bill have their reasons. Community banks do not share those reasons—the status quo is no longer acceptable. And those who support the Dodd bill have their reasons. Community banks want changes in the Dodd bill before we can give our full support. We ask both sides of this debate to stop using the good name of community banks to advance their own causes. Community banks can speak for themselves, and we do not need either proponents or opponents of regulatory reform speaking for us."
Steve Tscherter
President and CEO
Lincoln Savings Bank |
Steve Tscherter, Lincoln Savings Bank President/CEO, echoed the strong sentiment of the ICBA with the following comments:
"Congress must get this right this time! They have historically insisted that all of banking come to them with one message relating to proposed financial legislation; but, this is one issue which patently reflects the unreality of their idealistic desires. We would all like our jobs and decisions to be easier; but, the simple truth is, Community banks differ greatly from too-big-to-fail (TBTF) banks and Wall Street investment banks! Individually or collectively, community banks don't have the clout to cause the economic disaster TBTF and Wall Street banks do! Lacking total protective regulation, Wall Street will find new ways to speculate on risky endeavors at odds worse than you'll find in Vegas! We cannot again afford government intervention to prop up these maniacal gamblers! The price is too steep for taxpayers! There must be a supreme price for greed and failure. Better yet, there must be regulatory fabric and law which forbids such gambling by undercapitalized and over-bonused enterpirises and executives. Congress must buckle down and make hard decisions which will have grave consequences for those who would ignore rules and reason! Failure to do so will effectively put another nail in the coffin of capitalism and the USA!"
