Senator David Perdue Urges Senate To Roll Back Dodd-Frank Regulations
“For nearly eight years, small-town banks have been hammered by big government regulations enacted by Dodd-Frank”
WASHINGTON, D.C. – U.S. Senator David Perdue (R-GA) urged support for the bipartisan action the U.S. Senate is taking to roll back stifling regulations put in place by Dodd-Frank and provide relief to regional and community banks around the country.
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Relationship Lending: “My hometown bank has been bought and sold a few times. My father who was a school superintendent was on that board. It was my first exposure to how banking works. I remember going with my dad, who didn't make a lot of money, when he wanted a loan to buy a car. I remember sitting off to the side and listening to the conversation. I knew the lending officer because he taught me in Sunday school. We saw him every week in church and his children went to the school where my dad was principal. This is a different time today. I understand that. The facts still remain that relationship lending should be at the core of what we consider here. This is a lending institution making a transaction with an individual who will then pay that loan back.”
Getting Washington Out Of The Way: “Since Dodd-Frank became law, about 1,700 banks have shut down. Most of these are community banks and regional banks, entities that had nothing to do with the financial situation in 2008. Some in this body may see that as an encouraging sign that big government is now getting more control of the lending principal and the banking industry, I think they're misguided.”
Supporting Main Street: “Local banks, credit unions, and regional banks, are the banks supporting our local main street, providing small businesses with capital, and sponsoring little league baseball games. For nearly eight years, small-town banks have been hammered by big government regulations enacted by Dodd-Frank.”
Loosening Regulations: “Compliance costs for community banks have risen by more than four or five percent. I met with a regional bank from Georgia. Their compliance costs have gone up because of Dodd-Frank. That's money that could be in the community in the form of loans. Instead, it's now in the form of higher compliance costs and fines paid to the federal government.”
Providing Certainty: “We address government restrictions on reciprocal deposits in this bill. Reciprocal deposits have created uncertainty around the critical lifeline for community banks and especially minority-owned banks that have specialized in serving customers with limited discretionary access to capital. Dodd-Frank has crippled these banks when it comes to serving their communities.”
Growing Business in Georgia: “In my state, Citizens Trust Bank, a minority-owned bank in Atlanta, has been forced to drawback it's business because of the regulatory imposed by Dodd-Frank. This is counter intuitive. Thanks to the action we're taking this week, Citizens Trust will be able to grow their business because of safe harbor provisions. They are not alone. Carver State Bank, a minority-owned bank serving Savannah, Georgia, for 90 years, will also benefit.”
Stopping One-Size-Fits-All Policy: “Small banks often spend too much time and resources dealing with the regulations and compliance costs that Dodd-Frank has created. Put simply, Dodd-Frank is another one-size-fits-all, Washington, bureaucratic policy that hurts the very people it claims to champion, the middle class, working poor, and those communities that have the least access to capital. Fortunately, we have an opportunity to do something today to fix these problems.”
Bipartisan Support: “This bill has 12 Democratic cosponsors and I applaud them for the courage it's taken to work with us to get a bill where both sides give and take. People back home want both sides in the Senate to work together to get things done. Here's a shining example. If we can get it across the finish line, this will have a dramatic impact on main street back home.”
Senator Perdue is the only Fortune 500 CEO in Congress and is serving his first term in the United States Senate, where he represents Georgia on the Armed Services, Banking, Budget, and Agriculture Committees.
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