ICBA News Release
FOR IMMEDIATE RELEASE
ICBA Applauds Senate Passage of Tester/Hutchison Amendment
Key Amendment Ensures Megabanks Pay Their Fair Share
Washington, D.C. (May 6, 2010)—Independent Community Bankers of America (ICBA) Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., issued this statement today following Senate passage of the amendment sponsored by Sens. Jon Tester (D-Mont.) and Kay Bailey Hutchison (R-Texas) to the Senate’s Wall Street reform bill. The Tester/Hutchison amendment would expand the Federal Deposit Insurance Corporation (FDIC) assessment base to reflect the true risk to the system by basing assessments on assets minus tangible capital, not domestic deposits.
“ICBA thanks Sens. Tester and Hutchison for offering this critical ICBA-supported amendment and applauds the Senate for its swift passage. This is a victory for community banks. The Tester/Hutchison amendment recognizes the difference between Main Street and Wall Street by ensuring megabanks pay their fair share for the risk they pose to the FDIC’s Deposit Insurance Fund (DIF), and ultimately our entire financial system. The amendment alleviates the disproportional burden on community banks and will reduce the assessments of 98 percent of the banks with less than $10 billion in assets—keeping nearly $4.5 billion in community banks and their communities over the next three years.
“ICBA also thanks Senate Banking Committee Chairman Chris Dodd for his leadership on this issue and his recognition of the importance of this fairness amendment. ICBA has been a leading advocate for deposit-insurance parity and looks forward to working with the Senate to ensure that the financial regulatory reform legislation moving forward reins in the nation’s too-big-to-fail firms while allowing community banks to continue to serve their customers in local communities throughout the nation.”