Local Bankers Tell Congressional Subcommittee Financial Reform Will Cost Them
Johnson County, Kansas – Local bankers and credit union officers told a Financial Services Subcommittee hearing in Johnson County yesterday that the recent financial reform bill would place local banks at a competitive disadvantage.
David and Mariner Kemper, cousins, and CEO of Commerce Bank and UMB respectively, said their institutions have survived , and thrived, because they stuck to conservative, traditional banking practices. They both said they were community-based and emphasized relationships with their customers.
The Dodd-Frank bill, named for Democratic Senator Chris Dodd and Representative Barney Frank, would create a financial consumer watchdog commission and put more restrictions on bank transactions to prevent the kind of financial mismanagement that brought down Wall Street. The Kempers, and others at the hearing, said the new regulations will impose fees on small and medium - size banks, banks that were NOT responsible for the financial meltdown.
Commerce CEO David Kemper.
"The FDIC insurance costs that have increased already are going to increase on banks of 10 billion and above. That's clearly going to affect our bank. The Consumer Protection Financial Bureau has potential to add substantial cost and restrict business."
This is the second in a series of hearings on the financial crisis sponsored by Congressman Dennis Moore, Chairman of the Financial Services Oversight and Investigations Subcommittee.