Community Financial Institutions and Fostering Economic Growth

Floor Speech

Mr. MURPHY of Florida. Madam Speaker, I yield myself such time as I may consume.

First, I want to thank the gentlewoman from California for her leadership on this and countless issues that come before our committee.

I also want to thank the gentlewoman from West Virginia, the chair of Financial Institutions, for her constant willingness to come to the center and work for the greater good of our country.

I also want to thank the gentleman from Missouri (Mr. Luetkemeyer) for his outstanding leadership working for true regulatory relief to create jobs while protecting consumers. This is not the first bill that we have worked on together, and I hope it is not the last.

Across the Treasure Coast and Palm Beaches, the constituents that I am privileged to represent know that small businesses are the backbone of our economy. They understand that capital is the lifeblood that enables those businesses to grow, spurring innovation and creating jobs.

Community banks are on the front lines providing that capital, but they are being strangled by well-intentioned but excessive regulation. Let me be clear: I am not against reining in the excesses of Wall Street banks.

After the financial crisis nearly took down the economy and cost Americans $17 trillion worth of wealth and equity, the country's biggest banks should be held to a higher standard. It doesn't take a CPA to see the difference between a $2 trillion interconnected, globalized Wall Street bank and the 550 community banks on the town square under $1 billion in assets that do not yet get the regulatory relief provided by the Fed policy statement. We are here today to change that.

This bill would provide much-needed regulatory relief to community banks. Everyone says they are for community banks. Today is the day to prove it.

Madam Speaker, I include a letter of support from the Independent Community Bankers of America into the Record.

INDEPENDENT COMMUNITY BANKERS OF AMERICA ,

Washington, DC., May 5, 2014.
House of Representatives,
Washington, DC.

Dear Representative: On behalf of the more than 6,500 community banks represented by the Independent Community Bankers of America, I write to express our strong support for H.R. 3329, which is scheduled for floor consideration this week. Introduced by Reps. Blaine Luetkemeyer (R-MO), Patrick Murphy (D-FL), Tom Cotton (R-AR), Mike Quigley (D-IL), and Ann Kuster (D-NH), H.R. 3329 is bipartisan legislation that would direct the Federal Reserve to increase the qualifying asset threshold of the Small Bank Holding Company Policy Statement from $500 million to $1 billion and allow small savings and loan holding companies to be covered by its provisions. This legislation is a key priority for ICBA and a provision of our Plan for Prosperity: A Regulatory Relief Agenda to Empower Local Communities. ICBA urges all members of the House to vote YES on H.R. 3329.

Revising the Policy Statement will make it easier for small bank and savings and loan holding companies to raise both debt and equity and downstream the proceeds to their subsidiary banks. The Policy Statement contains a number of safeguards to ensure that the debt is managed responsibly and subsidiary banks remain well capitalized. Increasing the eligibility threshold to $1 billion to account for inflation, industry consolidation, and asset growth will help an additional 515 bank and savings and loan holding companies raise capital for additional consumer and small business lending, leading to job creation and community development.

Thank you for your consideration.

Sincerely,

Camden R. Fine,
President & CEO.

Mr. MURPHY of Florida. Madam Speaker, with that, I urge my colleagues to vote ``yes'' on the Luetkemeyer-Murphy bill, and with no further speakers, I yield back the balance of my time.

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