Anonymous
Anonymous asked in Politics & GovernmentPolitics · 10 years ago

Is this financial reform bill just another way to get rid of small town community banks?

It has been widely reported that Community banks will be badly hurt by this reform bill. Since we the taxpayer currently own very large shares of Citibank and BofA, is this just another way to get rid of small banks?

http://online.wsj.com/article/BT-CO-20100322-70885...

Update:

I prefer small banks as well, R. It's also good for your community.

8 Answers

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  • Matt
    Lv 4
    10 years ago
    Best Answer

    The only thing I care about are derivatives, and that is all they need to regulate. They need to make them trade derivatives on exchanges, take this power away form the big banks, and get with leaders around the world and make them do the same thing. I think this is a good article below. I have no idea why they have that consumer protection or too big to fail stuff. If they do a real reform of derivatives, that will solve most of the problems.

    As Paul Volcker put it, "The most important financial innovation that I have seen in the past 20 years is the automatic teller machine." Most of these complex derivatives which played a large role in the financial collapse, serve no valid purpose. It is nothing but casino gambling.

    http://www.marketwatch.com/story/meet-the-new-gold...

  • 10 years ago

    I don't think the bill is designed to get rid of community banks, but I am not convinced it is going to solve any problems either.

    In large part the financial collapse was not caused by small banks. Yet, with the creation of a new bureau/agency within the current version of the financial reform bill, it seems a lot of the new regs may affect the smaller community banks disproportionately. So does that really address the problems that led us here in the first place?

    In a traditional bank new regs lead to increased costs...changes to training, more training, internal and external audit and compliance functions...those costs will affect smaller banks in a bigger way.

    The ABA, American Bankers Association, does not support the bill in this form. They do state they support reform, particularly an oversight committee that would ID systemic problems across the financial sector. That presumably would stop big problems before they get out of hand.

    I think we already have a lot of regulatory agencies in place. So do we need another, or do we need those already in place to be on the lookout?

    Source(s): An article I wrote about the financial reform bill. http://www.associatedcontent.com/article/2911512/a...
  • Flower
    Lv 7
    10 years ago

    It does not explain how it would cause small banks to go out of business. It says banks can be regulated by the States instead of the Fed so that is good. Why would the White House wants to get rid of small banks when they know that is the bread and butter of local small business and they have been shaping programs to induce small banks to help homeowners. You have to give your idea on why you think this is true. Citibank and BofA have mostly repaid the securitization loans they got a year ago.

  • R
    Lv 6
    10 years ago

    Depends on the bank. Some of them have also made some not appropriate bills. I belong to the "hippie" bank in town. They are wonderful and have no concern about this bill as they are very socially appropriate in their work.

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  • Anonymous
    10 years ago

    I guess those community banks will have to invest in more honest companies now.

  • Anonymous
    10 years ago

    no, more than death panels were a part of the health care bill. It is a Republican talking point lie.

  • Zeve
    Lv 5
    10 years ago

    When it comes to banking, I say let the big banks do it. I would never bank with a small bank, but that's just me.

  • Anonymous
    10 years ago

    WRONG

    IITS THE TO BIG TO FAIL CORRUPT WALLSTREET BANKS

    that will be getiing OBAMA's NEW LAWS aND REGUALTIONS..

    if you dont like it..CHANGE BANKS............

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