FOR IMMEDIATE RELEASE
ICBA Welcomes More Clarity to Volcker Rule
Supports Efforts to End Dangerous Overconcentration, Protect Taxpayers and Dual Banking System
Washington, D.C. (March 4, 2010)—R. Michael Menzies, chairman of the Independent Community Bankers of America (ICBA) and president and CEO of Easton Bank and Trust Co., Easton, Md., and Camden R. Fine, ICBA president and CEO, issued this statement following the U.S. Treasury’s release of more details regarding the proposed Volcker Rule, which would impose risk and size limits on the nation’s systemically dangerous too-big-to-fail institutions.
“Ending too-big-to-fail is one of the most urgent goals facing the nation and the only way to truly protect consumers, small businesses and the economy from another catastrophic financial meltdown. The Volcker Rule would be an important step toward ending too-big-to-fail because it would limit the size and riskiness of the nation’s largest financial companies and, ultimately, end the dangerous overconcentration within our financial system—something ICBA has warned policymakers about for nearly two decades. This economic crisis has clearly shown us that it’s not safe or healthy to have four financial institutions controlling nearly half of our nation’s banking assets.
“The details released by Treasury concerning the Volcker Rule will go a long way toward reining in these systemically dangerous firms. Specifically, ICBA appreciates that the Volcker Rule calls for additional capital requirements and limits on nonbank financial firms engaged in proprietary trading and prohibits mergers and acquisitions that would result in a financial firm holding more than 10 percent of the liabilities of the financial system.
“If a company is too big to fail, it’s simply too big to exist. Our government should not be propping up too-big-to-fail institutions while community banks that serve their local communities are considered too small to save. ICBA looks forward to working with the administration to advance the Volker Rule and other policies that deter risky practices of systemically dangerous firms and put a hard stop on too-big-to-fail.”
For more information, visit www.icba.org.