FOR IMMEDIATE RELEASE
ICBA Urges Congress to Pass Financial Reform Bill This Week
Bill Should End Too-Big-To-Fail, Provide Strong Regulation for Nonbanks
Washington, D.C. (December 7, 2009)—The Independent Community Bankers of America (ICBA) today sent a letter to Congress urging members to pass a solid financial reform bill by week’s end that ends too-big-to-fail and provides strong regulation and supervision of nonbank financial providers.
“The financial meltdown and ensuing recession demand a strong response,” said Camden R. Fine, ICBA president and CEO. “Our nation’s more than 8,000 community banks, their customers and local communities have all suffered long enough—a strong financial regulatory reform bill is needed to hold too-big-to-fail firms accountable to prevent future abuses and safeguard America’s financial future for generations to come.”
In the letter, ICBA said that the legislation must address the systemic danger posed by too-big-to-fail financial companies, both banks and nonbanks. It must limit their dangerous activities, give them incentives to downsize and provide a resolution process if they fail. ICBA also called attention to the immediate need for strong regulation and supervision of nonbank financial providers, which played a key role in creating the financial crisis.
While powerful regulations need to be put in place, ICBA also urged Congress not to unduly burden the nation’s common-sense community banks, which have always served the best interests of their customers. “The bill must not add to the heavy regulatory burden already faced by community banks. These community banks did nothing that contributed to our financial crisis and remain ready to help finance economic growth in their communities.”