The Community Bank Destruction Bureau
Although the following article mentions Arkansas community banks, The same can be said for community banks in other states. They "may be headed toward extinction under new federal regulations called the Dodd–Frank Wall Street Reform and Consumer Protection Act."
It’s commonly called “Dodd-Frank,” a federal law that created the so-called Consumer Financial Protection Bureau. But it has instead become (as with so many similar federal regulations) the Community Bank Destruction Bureau.
by Curtis Coleman, Contributing Author:Arkansas’s community banks, one of our State’s most resilient and important home-grown assets may be headed toward extinction under new federal regulations called the Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama in July, 2010.
If you’ve tried to get a home mortgage or a personal consumer loan from your local community bank lately, you’ve likely already run head-on into the formidable new regulations forced on your community bank. The Consumer Financial Protection Bureau (or “CFPB”) is imposing daunting new compliance, operational and recordkeeping burdens on all banks, making it significantly harder for local community banks to serve their communities and help grow the local economy.
As almost any small businessman can tell you, the cost of proving compliance with federal and state regulations can often be much more than the actual cost of complying with the regulations. The new CFPB rules and recordkeeping requirements on community banks has created new pressure to hire additional compliance staff instead of customer-facing staff. And it means that more money is spent on outside lawyers and consultants. That can dramatically reduce resources that could be directly applied to serving you, the bank’s customer, and your community.
The CFPB has been writing 17 new consumer laws and this expansive rule-writing authority is being exercised by a single director over all banks, large and small, and will touch all consumer financial services and products.
And to that add the final insult, Dodd-Frank authorizes state Attorneys General to enforce these new federal regulations against their state’s community banks.
If you’re wondering how the federal government is destroying your personal rights and liberties, go try to get a personal consumer loan from your local community bank.
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Curtis Coleman is the President, Curtis Coleman's Institute for Constitutional Policy and contributing author to the ARRA News Service.
Tags: CFPB, community banks, Consumer Financial Protection Bureau, consumer loans, Dodd-Frank, home mortgages, Coleman Commentary Podcasts, Government and Business, Over Regulation To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
by Curtis Coleman, Contributing Author:Arkansas’s community banks, one of our State’s most resilient and important home-grown assets may be headed toward extinction under new federal regulations called the Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama in July, 2010.
If you’ve tried to get a home mortgage or a personal consumer loan from your local community bank lately, you’ve likely already run head-on into the formidable new regulations forced on your community bank. The Consumer Financial Protection Bureau (or “CFPB”) is imposing daunting new compliance, operational and recordkeeping burdens on all banks, making it significantly harder for local community banks to serve their communities and help grow the local economy.
As almost any small businessman can tell you, the cost of proving compliance with federal and state regulations can often be much more than the actual cost of complying with the regulations. The new CFPB rules and recordkeeping requirements on community banks has created new pressure to hire additional compliance staff instead of customer-facing staff. And it means that more money is spent on outside lawyers and consultants. That can dramatically reduce resources that could be directly applied to serving you, the bank’s customer, and your community.
The CFPB has been writing 17 new consumer laws and this expansive rule-writing authority is being exercised by a single director over all banks, large and small, and will touch all consumer financial services and products.
And to that add the final insult, Dodd-Frank authorizes state Attorneys General to enforce these new federal regulations against their state’s community banks.
If you’re wondering how the federal government is destroying your personal rights and liberties, go try to get a personal consumer loan from your local community bank.
--------------
Curtis Coleman is the President, Curtis Coleman's Institute for Constitutional Policy and contributing author to the ARRA News Service.
Tags: CFPB, community banks, Consumer Financial Protection Bureau, consumer loans, Dodd-Frank, home mortgages, Coleman Commentary Podcasts, Government and Business, Over Regulation To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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