"At this point, we make too many business decisions based on regulations versus serving the client", bank president Larry W. Myers said in a statement. Several Democratic lawmakers facing tough re-election races this year have broken ranks with Minority Leader Chuck Schumer of NY and Democratic Sen.
On several fronts, Dodd-Frank clearly threw in the kitchen sink on rules and reforms that went well beyond the original goal of dealing with the global financial crisis and systemic vulnerabilities. As a result of Dodd-Frank's rules on checking accounts and debit cards, by 2013 just 38 percent of bank accounts remained fee-free.
Even though the banks said that they support the bill, they noted they would prefer to scrap the asset threshold altogether and instead allow the Federal Reserve Board to designate banks as systemically important by using its own measurement of riskiness.
The Senate will vote on a bill Tuesday that's being touted by supporters as much-needed regulatory relief for small community banks - a sales pitch that conjures images of tellers greeting longtime customers by name as they kick farm dust off their boots at the door.
Contending that the language could be "the single most risky provision in the bill", Warren offered that such pressure on the Federal Reserve could result in a "systematic weakening of the rules for all the big banks". Elizabeth Warren, D-Mass. "CBO estimates that the probability is small under current law and would be slightly greater under the legislation", the budget scorekeeper said in a cost estimate published this week. Critics said that removing this oversight could lead to problems that led to the 2008 recession, mainly predatory lending and investing. They argue they must respond to the distinct political and banking needs in their states, which they say have been hurt by consolidation in the banking industry since Dodd-Frank was enacted. Lawmakers are intent on easing those rules for midsize and large regional banks, asserting that would boost lending and the economy. Warner called for swift passage of the legislation, which will provide targeted relief for community banks and credit unions so they can improve access to capital and increase economic prosperity in the Commonwealth. For example, it doesn't make big changes to the Consumer Financial Protection Bureau or repeal the Volcker Rule trading restrictions. The new legislation would quintuple the threshold at which those safeguards kick in - scrutinizing only those with $250 billion or more in assets.
ICICI's Chanda Kochhar, Axis Bank's Shikha Sharma summoned in PNB fraud case
Sources said the two top bank officials would be questioned with regard to giving loan facility to the Gitanjali Group . ICICI Bank Ltd has an exposure of Rs750 crore to the Gitanjali group of companies and Rs500 crore to Gitanjali Gems.
"This bill is all about the big banks", she said, adding that the bill raises the risk of another financial meltdown. The arguments that Bove has been making publicly for years are the same specious ones being offered by the bill's co-sponsors, and the trade groups calling for a rollback of banking regulations: Banks are suffering and so, by extension, are consumers, businesses, and the economy at large.
While Republicans are all in favor of the bill, not all Democrats agree with Warren. Warren said that is the case because lobbyists have convinced lawmakers that it's a good bill. The Senate bill would ensure that most of it stops being generated at all. For the others, compliance costs should drop.
Major banking reform legislation that sharply divides Democrats advanced Tuesday in the Senate. If passed, it would be the most substantial weakening of the regulations put in place by the 2010 Dodd-Frank law that strengthened financial regulations. But members of the progressive wing of the Democratic Party have been mounting resistance to the entire bill.
The bill would change the regulatory framework for small depository institutions with assets under $10 billion (community banks) and for large banks with assets over $50 billion, as well as revise consumer mortgage and credit-reporting regulations and the authorities of the agencies regulating the financial industry.