A vote for Dodd-Frank will “end community banking”

A vote for the Frank-Dodd bill will end community banking through onerous regulations that those banks cannot afford.  But you don’t have to take my word for it.  Sarah Wallace the president of an Ohio community bank sums it up in the Wall Street Journal.

The comprehensive financial reform agreed upon by the House and Senate on Friday, along with all the new regulations of the past year, could signal the end of community banking. The new reforms will give more power to the Federal Reserve to regulate how my bank and others like it do business.

What does all this mean for our customers? Less credit will be available, costs will increase, and we will be less able to make loans to regular people who were creditworthy in the past. This is the perfect storm for the small retail banking customer. We will start to see more small community bank failures and mergers because of voluminous regulation.

I have served as the president and now the chair of the board of directors of First Federal Savings and Loan Association in Newark, Ohio, since 1980. First Federal is a $200 million, federal mutual thrift. We were created to provide people a safe place to deposit their money, and loan that money back into the community in order to meet housing needs. Additionally, we utilize a significant portion of our profits to give (yes, I said give-not lend) to worthy community organizations and projects.

Senator Brown, this legislation which you are supporting will have the immediate effect of drying up capital and killing jobs. That is reason enough to change your mind and not support the legislation.

About Rob "EaBo Clipper" Eno

  • gg

    This has been known for along time.  Scott saves 1,000 jobs in MA, with his carve out, but screws 1,000,000’s in the process.

  • … a little late to the party, don’t you think.

    It wouldn’t suprise me if she voted for Obama like Zuckerman and most of Wall Street. I’m glad these people are joining the anti-Obama chorus, but where have they been.

    She should have wrote this months ago. Its too late now.

  • nomad943

    While the big commericals are shaving points and playing swap games, it the small community banks that are funding what economy is left out there on Main Sstreet.

    And guess what, its all drying up and imagine how this attack on the local banks will “help” us.

    Great timing too, considering this article in yesterdays print.

    Big companies are building up cash and are expected to report strong earnings starting this week. Not so for small businesses that can’t get loans – or hire freely until they do.