FOR IMMEDIATE RELEASE
ICBA Statement on Senate Banking Committee Passage of Dodd Bill
Washington, D.C. (March 23, 2010)—James D. MacPhee, chairman of the Independent Community Bankers of America (ICBA) and CEO, Kalamazoo County State Bank, Schoolcraft, Mich., today issued this statement after the Senate Banking Committee reported out the Restoring American Financial Stability Act of 2010.
"Our country needs meaningful financial regulatory reform that protects America's taxpayers and our financial system. Our nation's nearly 8,000 community banks never participated in the risky practices that led to this economic crisis and are clearly the one part of the financial system that truly works. We can no longer tolerate a system where a handful of institutions have the ability to put our entire country at risk. The only way to truly safeguard our financial future is to end too-big-to-fail and enforce rules on the unregulated financial players. ICBA appreciates the Senate Banking Committee's efforts to rein in systemically dangerous institutions and will continue to work with the Senate as the legislation moves forward to ensure that financial reform efforts are truly meaningful.
"ICBA supports preserving the prefunded systemic-risk fund included in the bill and expanding it from $50 billion. Additionally, ICBA continues to support strong Volcker-rule restrictions on systemically dangerous firms, which are included in the bill, and the ability to establish new federal thrifts.
"ICBA has continued to call adamantly for parity between large and small banks and supports legislation passed by the House in December that would broaden the assessment base used by the FDIC to determine bank premiums by using total assets (minus tangible equity), rather than domestic deposits. Unfortunately, the approach taken to broaden the assessment base in the Senate Banking Committee legislation does not go far enough.
"ICBA will also continue working to enhance the role of prudential regulators in consumer rulemaking and to maintain the prudential regulators' role in consumer enforcement. Additionally, ICBA will work to retain the Federal Reserve's supervisory authority for state member banks, which ultimately gives the Fed an efficient means for gauging the soundness of the banking sector—something that is critical to developing and implementing sound monetary policy. Eliminating the Fed’s supervision of state member banks would be counterproductive and would ultimately harm Main Street local communities and the community banks that serve them during this critical time."