Republicans Shed Light on the Impact of Dodd-Frank on Financial Institutions
Washington,
July 24, 2019 -
WASHINGTON – Today, the full committee held a hearing to examine the proposed merger of BB&T and SunTrust Bank. Committee Republicans questioned the banks’ CEOs on the thorough review process they are complying with in order to merge, as well as their efforts to support and protect their customers while navigating the burdensome Dodd-Frank regulatory framework.
Republican leader of the committee, Patrick McHenry (NC-10), asked Kelly King of BB&T, about the bank’s investment in technology to remain competitive. Watch Ranking Member McHenry’s remarks here or by clicking on the image below.
Rep. McHenry: “Your merged institutions will have significant cost savings by merging your regulatory and compliance departments, for sure, but you also both highlight the need for technology investment. According to Pew Research, in 2011 there are 35 percent of Americans that had a smart phone, today it’s 81 percent. How does that change the banking landscape for your institution?”
King: “Representative, on both sides, Mr. Rogers can speak to this as well, this has changed dramatically. For example, in our company today, on any given day, we have 1.8 million touches with our clients digitally and about 87,000 in the branches.”
Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions, Blaine Luetkemeyer (MO-03), highlighted the burdensome regulatory landscape that has contributed to the consolidation of many banks since the enactment of the partisan Dodd-Frank Act. Watch Congressman Luetkemeyer’s questioning here or by clicking on the image below.
Rep. Luetkemeyer: “Well I know one of the situations that we’ve seen is since Dodd-Frank’s been instituted, this mass-exodus, this big merger process, which since then we’ve had 1,812 mergers, those have gone through. And we wind up with basically losing a bank or a credit union every day and I’m just curious how the Dodd-Frank Act impacted your decision.”
Congressman Roger Williams (TX-25) went on to discuss the extensive and thorough regulatory review process of bank mergers. Watch Congressman Williams’ questioning here or by clicking on the image below.
Rep. Williams: “Contrary to what some of my colleagues seem to be implying, your two banks are being carefully examined by multiple federal agencies. The Federal Reserve and the FDIC are making sure this new entity will be safe and sound from a regulatory standpoint. The Department of Justice is doing an analysis to ensure that there will still be adequate competition and a healthy financial marketplace for consumers and as both of you have said, you’ve held the last two statutory required hearings to ensure the communities you are serving are aware of this potential change. So, if my colleagues have complaints about the process of two banks merging, then I would encourage them to change the underlying law, rather than publicly criticize your two banks who have been doing everything by the book.”
