Monday, April 24, 2017
Reforming Finance For Local Economies Act
John Kennedy, Republican U.S. Senator from Louisiana, according to today's Wall Street Journal, is offering a bill by the above name which, he claims, will exempt institutions with assets of $10 billion from Dodd-Frank. Lest you run into the paywall, I found the article online here. I did not review the proposed act itself, and it certainly seems like an interesting idea. Kennedy trots out the usual factoids about the complexity of Dodd-Frank, the increased cost of compliance, the percentages of loans initiated by community banks, the claim that community banks' behavior did not precipitate the 2008 financial crisis, etc. It's hard not to be at least a little skeptical, however. One wonders how many congresspersons like Senator Kennedy perceive the hostility to Dodd-Frank and see an opportunity to burnish their credentials with whatever constituency whose support they seek with a bill that may or may not pass and may or may not achieve the advertised effect.