The Colorado Bankers Association supports financial reform – but has issues with some of the provisions in the Senate’s version of financial regulatory reform bill S.3217, which passed May 20.
CBA President Don Childears said some of the provisions will be helpful, such as those that create a systemic risk council, abolish too-big-to-fail protections and provide a systematic way to get rid of big failing companies.
“However, the 1,500-plus page Wall Street reform bill contains many politically charged, last minute proposals that have nothing to do with reigning in Wall Street,” he said. “These proposals, along with the unintended consequences, overshadow the good provisions within the bill, and threaten key aspects of our recovering economy.”
Although the legislation is intended to protect the economy from future bailouts and large unstable companies, it actually will burden customers – even the most creditworthy – as they try to obtain credit, Childears said.
In some cases, the Senate reform bill implements a second or third layer of regulation on banks while leaving the “nonbanks” unregulated, he said.