Walker Votes to Provide Relief for Local Banks and Job Creators in Our Communities
WASHINGTON, D.C. – U.S. Representative Mark Walker (R-N.C.) today released the following statement after the House passed S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act:
“Local banks used to serve as the epicenter of growth for our community, proudly thriving on Main Streets in our towns and serving as the source of capital for local businesses to start, expand, and grow. Unfortunately, heavy-handed and costly regulations in the Dodd-Frank legislation have caused many of these small banks to shutter or pass along financial burdens to consumers and job creators. Last year, the House proudly passed the Financial CHOICE Act to reverse course, but the Senate ultimately failed to pass it. The Economic Growth, Regulatory Relief, and Consumer Protection Act includes many of those same reforms and focuses on freeing our local banks to help our communities thrive.”
On June 8, 2017, the House passed H.R. 10, the Financial CHOICE Act of 2017.
This legislation would modify provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank Act) and other laws governing regulation of the financial industry. The bill would change the regulatory framework for small depository institutions with assets under $10 billion (community banks) and for large banks with assets over $50 billion. The bill also would make changes to consumer mortgage and credit-reporting regulations and to the authorities of the agencies that regulate the financial industry.
In 2010 (the year the Dodd–Frank Act was signed into law), North Carolina's 6th District's housed nine community banks including CommunityOne Bank in Asheboro, NewBridge Bank in Greensboro, and Mid-Carolina Bank in Burlington. Today, that number is only two as Dodd-Frank regulations have forced closures and mergers across North Carolina. In fact, community banks are closing at a national rate of one per day. Meanwhile, the five largest banks in the country have grown their domestic assets by more than 40 percent during the same time.
Instead of fixing the causes at the center of the 2008 financial crisis, the 2,300-plus page Dodd-Frank bill codified into law “too big to fail” and taxpayer-funded bailouts. And instead of being tough on Wall Street, it put many local banks out of business because they did not have the resources to navigate the expansive and costly regulations. The effect has been seen in communities nationwide.
Small, community banks account for 54 percent of small business loans across the country. Small businesses make up 64 percent of net new private sector jobs.
You can read the full text of the legislation here.