U.S. Sen. Perdue: Dodd-Frank regulations holding back economy
Some $2 trillion on the balance sheets of small and regional banks will be freed up if and when Congress passes a proposed rollback of federal banking regulations imposed following the Great Recession, U.S. Senator David Perdue said.
Perdue, R-Ga., is meeting this week with executives from Regions and SunTrust banks, two of the banks that stand to benefit if the U.S. House of Representatives approves reforms to the Dodd-Frank Act the Senate passed last month.
Supporters say the legislation would help America’s community and regional banks while maintaining consumer protections against the worst abuses of the giant national banks that contributed so much to the financial meltdown of 2008-09.
The main complaint against Dodd-Frank has been that in their zeal to bring greater oversight to the larger banks, congressional Democrats and the Obama administration cast a wide regulatory net that also caught up community and regional banks.
“It made big banks bigger and more profitable and put 1,700 small banks out of business that had nothing to do with the financial crisis,” said Perdue, a member of the Senate Banking Committee.
Perdue said the best chance for House passage of the reform bill will be if a bipartisan combination of Republicans and Democrats can join forces behind it, as happened in the Senate, where 16 Democrats voted for the measure.
Read more at Atlanta Business Chronicle.