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Friday, April 16, 2010

Oppose the Regulatory Reform Bill

The Senate is soon to consider a bill to reform the financial system. The legislation does contain important reforms that banks support, such as the creation of a systemic risk oversight body and provisions designed to restrict too-big-to-fail. Unfortunately, the bill would also impose considerable new burdens on traditional banks. It is now widely recognized that these banks did not cause the financial crisis and already carry a daunting regulatory burden. This bill would add significantly to that burden.

I strongly urge bankers, bank directors and employees – in addition to all bank customers – to use ABA’s automated system to send customized letters to your senators, asking them to oppose the financial regulatory reform bill that the full Senate may now start considering late next week. Time is of the essence. Sensible regulatory reform will fully address critical issues as too-big-to-fail and adequate regulation of nonbank lenders, in addition to effective revisions to consumer protection rules. This Senate legislation fails to do that.

As written, the legislation will impose new costs and regulatory burdens on traditional banks that will make it more difficult for them to serve their communities and make more loans. I urge you to send a letter to your Senators to stop this bill from moving forward until a balanced and sensible approach can be crafted. Please send a letter.

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