Legislation Introduced to put Federal Government in Control of Community Banks
H.R. 3126 would control the most intricate details of operating a community bank
New Iberia, LA, July 9, 2009 – H.R. 3126, misleadingly named the Consumer Financial Protection Agency Act of 2009, was introduced late Wednesday, July 8 by Rep. Barney Frank (D-MA), and which would create a completely new federal agency to oversee and control the daily operations of community and small town banks.
Under H.R. 3126, every bank would be forced to offer federally approved “standard financial products and services.” This would impose uniform products on every bank without regard to local communities, economies, or needs of customers. Deviations from the federal mandates would make community banks subject to frivolous lawsuits.
“This is a breathtaking control grab of ordinary community banks in small towns across America,” said Ross Little, Jr., Senior Vice President of Teche Federal Bank. “This measure would grant unprecedented power to the federal bureaucrats and grant even more power to the Federal Reserve, an already unaccountable and non-transparent body. Americans should be outraged.”
This legislation would devastate community banks, hurt the economy, and harm the ability of community banks to offer services to those who need them most, particularly low to moderate income families. It would result in major layoffs in the banking industry. It would also make it much more difficult to provide financing for home loans and other services. “Clearly, Washington liberals don’t have the best interests of ordinary Americans at heart, despite their repeated claims. This legislation should be exposed for what it is,” said Little.
A Town Hall meeting to discuss the Obama administration’s so-called Financial Regulatory Reform proposal will be held Wednesday, July 15, at 6:00 PM, at the South Regional Library in Lafayette, 6101 Johnston Street. For more information, call Ross Little, Jr. at 337-560-7151.
