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Local Newspaper Stories Underscore Growing Concerns About Impact Of Dodd-Frank Act On Jobs, Economy
Posted by on September 26, 2011

Outside Washington, D.C., there is growing concern about the regulatory burden imposed by the Dodd-Frank Act and the harmful effect it will have on jobs.

Cynthia Richards, New Mexico’s Financial Institutions Division director, tells the Albuquerque Journal that the Dodd-Frank Act is “onerous,” “costly,” “confusing,” and “difficult to implement.”

“When we see this act fully implemented we’re going to see across the nation the effect on competitiveness and the profound effect on the economy, and not for the good.”

Richards explains the Dodd-Frank Act “is largely to protect banks that are too big to fail,” but it is smaller, community banks that will be impacted the most by its regulations.  “I’m overwhelmed with the concern smaller banks have with this act.”

Read the story here.

In a separate article, the Journal reports that small banks that survived the financial crisis “are not so sure they can survive the new federal regulations” put in place by Dodd-Frank. 

One local banker says complying with regulations will cost his bank $500,000 per year.  Others noted that community banks did not cause the crisis and do not have the vast amount of compliance resources that Wall Street firms do.

 

“We’re small business people. We have to understand and comply with the regulations just like Wells Fargo. We don’t have 70 attorneys on staff to figure it out.”

Michael Martin, CEO of Lordsburg’s Western Bank

 

“We’re being penalized for things none of us ever thought about doing…I was penalized for not lying” about the credit worthiness of potential borrowers.

Craig Reeves, President

First National Bank of New Mexico in Clayton

 

Read the story here.

The Fort Wayne Journal Gazette interviewed Century 21 President and CEO Rick Davidson who says uncertainty is holding the economy back and the tax hike proposed by President Obama will hurt small businesses:

 

Davidson said he is trying to stay optimistic about President Obama’s jobs bill proposal but said the commander-in-chief’s comments this week are cause for concern.

“The president talked about more taxes for Americans who make $1 million or more a year,” but that would penalize many small business owners if their operations are counted as income.

“Most of the job creation is going to come from small business,” Davidson said.

 

Actually, while the President talks about raising taxes on those who make $1 million or more a year, his plan would increase taxes on those who earn more than $200,000 a year – an even bigger hit to small businesses that create the majority of jobs in the U.S.

Read the story here.

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