News for the Ninth

Press Release

As someone who has spent over 30 years in the financial services industry, I have seen firsthand the important role that local financial institutions play in helping families realize the American dream. Community banks and credit unions weren't a cause of the financial crisis, but they've been grouped by the administration and some lawmakers with large banks as part of the solution. As a result, the federal government is redefining the role of the community banks and small financial institutions that serve Main Street, Missouri all in the name of reforming Wall Street.

Our economy continues to limp along as the government expands its reach into the private sector. I hear it from every business person that walks into my office from farmers to manufacturers, contractors, insurance agents, bankers, and just about any other private sector profession that exists in Missouri. Excessive and duplicative regulations are preventing economic growth. Local financial institutions, which serve as a catalyst for growth in many small communities across our state, are particularly susceptible to the negative, unintended consequences of Washington's "one size fits all" regulatory approach.

That is not to say that there are not areas within the financial services sector that are in need of reform. We live in a world where banking is becoming more concentrated and lending is limited. That is why it is important to provide some regulatory relief to the small, hometown institutions that have served our local communities well and did not contribute to the financial crisis of 2008. In May, I introduced the Communities First Act, legislation that will help community banks and credit unions foster economic growth and continue to serve the clients they personally know so well. The Communities First Act seeks to give targeted, regulatory relief to community institutions and their customers, tax relief for small banks and holding companies, and modifications for small Subchapter S corporations.

Every day, community banks and other local financial institutions help Americans improve their lives and realize their dreams. That mission is becoming more and more difficult for our smaller institutions. Regulatory, tax, and paperwork requirements are disproportionately burdening community banks and credit unions. The Communities First Act would require the SEC to conduct a cost/benefit analysis before approving any proposed accounting change so that accounting standards provide a benefit commensurate with their compliance cost. Another change the bill makes is to increase the threshold number of bank shareholders that trigger SEC registration from 500 to 2,000, allowing for greater investment in our local institutions. The legislation also creates a limited tax credit for community banks to boost credit in our communities.

The Communities First Act will also ensure that the new Consumer Financial Protection Bureau (CFPB) will not unnecessarily regulate community institutions by solidifying the intent of Dodd-Frank to exempt community banks from CFPB examinations. It also permits the new Financial Stability Oversight Council to have a stronger voice in the review of CFPB regulations by lowering the vote threshold for a veto, ensuring that one new and highly unregulated federal agency will not have the ability to single-handedly harm community banks and the services offered to their customers. To date, this legislation is pending before the House Financial Services Committee and has been co-sponsored by a bipartisan group of 19 lawmakers.

I have made it a goal of mine to promote reasonable and effective solutions to the problems facing Missourians and all Americans. As many of you have already figured out, common sense is pretty rare in Washington. The Communities First Act will allow community banks and credit unions to operate on a more level playing field by requiring that the federal government take commonsense approaches to regulation.

I spent more than 30 years as a community banker and understand the communities served by these banks and the unique challenges they face. I also understand the important role they play in making the American dream a reality for Missouri families. Instead of inhibiting their ability to do so, it is time for Washington to work with them as partners in the restoration of the American dream.

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