Discussion · House of Representatives
J. French Hill Republican
“I support this bill because it helps community banks compete with big Wall Street banks. It cuts rules and costs for well-run local banks. It also gives them more capital and lets them buy failing local banks instead of letting mega-banks take them over.”
“Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, let me address that comment that the ranking member has articulated, which is that somehow this bill reduces the power of community banks to compete with the big, globally systemic banks that she described. I would really argue just the contrast. This bill tailors the regulatory compliance so that a bank with a straightforward, simple business plan that is well managed, that is well capitalized can have a lower tailored compliance cost compared to the one-size-fits-all approach that was a part of Dodd-Frank aimed at those big, Wall Street globally systemic banks. Secondly, if you don’t want them to grow, then you want community banks to have access to more capital. That is offered in this bill. You want them to be more successful. That is offered in this bill. You want them to be able to buy a failing bank on their own or with partners to compete with the biggest banks in the country who are just simply given banks that need resolution at the FDIC. If a small bank fails in some State, they just let the big banks bid on them. This bill creates competition. Chairman Barr walked through that. This actually increases the chance for entrepreneurs to acquire, unfortunately at the demise of a local bank, so that it is not sold to some big Wall Street lender. I could go on with all the benefits of this bill that is tailored and focused on the growth and success of our Main Street institutions, but I can think of no better person to help me make that case than the next speaker. Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Loudermilk), the vice chairman of our Financial Institutions Subcommittee.”
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, let me address that comment that the ranking member has articulated, which is that somehow this bill reduces the power of community banks to compete with the big, globally systemic banks that she described. I would really argue just the contrast. This bill tailors the regulatory compliance so that a bank with a straightforward, simple business plan that is well managed, that is well capitalized can have a lower tailored compliance cost compared to the one-size-fits-all approach that was a part of Dodd-Frank aimed at those big, Wall Street globally systemic banks. Secondly, if you don’t want them to grow, then you want community banks to have access to more capital. That is offered in this bill. You want them to be more successful. That is offered in this bill. You want them to be able to buy a failing bank on their own or with partners to compete with the biggest banks in the country who are just simply given banks that need resolution at the FDIC. If a small bank fails in some State, they just let the big banks bid on them. This bill creates competition. Chairman Barr walked through that. This actually increases the chance for entrepreneurs to acquire, unfortunately at the demise of a local bank, so that it is not sold to some big Wall Street lender. I could go on with all the benefits of this bill that is tailored and focused on the growth and success of our Main Street institutions, but I can think of no better person to help me make that case than the next speaker. Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Loudermilk), the vice chairman of our Financial Institutions Subcommittee.