It’s no secret that small community banks have found Dodd-Frank, an overhaul of the banking system, onerous. While a large bank can afford to hire an entire flock of compliance lawyers, small banks cannot. That’s where Republican U.S. Rep. Tipton comes in. Tipton this week asked Federal Reserve Chairwoman Janet Yellen to support his plan to save small banks from strangulation by Dodd Frank.
And, it’s not just the poor banks. It’s communities who are harmed by Dodd-Frank. Mike Burns, Southwest President of Alpine Bank, told the Durango Herald:
“We really want to focus our time and energy in supporting the communities in which we operate. This (dedicating staff to ensure compliance) creates a distraction for us.”
Part of the issue is the so called character loans that small banks grant community members that may not fit exactly into lending parameters. Of course the Colorado Public Interest Research Group, an arm of the liberal thought police, came to liberals’ defense in crippling banks. Its executive director said:
“There’s an assault on Dodd-Frank every day in five different ways in the House, so it’s tough to keep track of all of them. I’m at a loss for why Congress is reviewing the constitutionality of the CFPB because previous constitutional challenges at the courts have all been thrown out.”
CPIRG is at a loss because the nonprofit has never had to run a small business and face the realities that making numbers work under intense government scrutiny brings. Colorado small businesses should thank Tipton.