CBA Statement on President Signing Into Law Financial Regulatory Reform Legislation

Rod Brown, president & CEO of the California Bankers Association, released the following statement today regarding President Obama signing into law the Dodd-Frank Wall Street Reform and Consumer Protection Act:

“Today, the president signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, a historic piece of legislation that will forever change the financial industry. The California Bankers Association, along with state banking associations across the country and the American Bankers Association, have worked with Congress and the regulatory bodies throughout the financial crisis and resulting severe economic recession with the objective of enacting meaningful reform.

“The legislation contains numerous valuable provisions which CBA supports, including the creation of a new systemic risk council, development of an enhanced resolution authority to wind down failing institutions that would have a systemic impact on the financial system, and closure of several significant gaps in oversight of the previously unregulated shadow banking system to protect consumers.

“However, the Dodd-Frank bill creates a significant new regulatory burden on supervised financial institutions that will have harmful effects on traditional banks and will adversely impact their ability to serve consumers and businesses. The legislation adds more than 30 new and expanded regulations on traditional banks that will limit their ability to extend credit thereby diminishing a critical factor in assisting California’s economic recovery and creating new jobs.

“In addition, several provisions in the measure that have nothing to do with financial regulatory restructuring or consumer protection have made their way into this legislation, including the new interchange provisions for debit cards that will benefit retailers, not consumers, as well as an exemption from regulatory oversight of auto dealers who market and originate auto loans to consumers.

“The steps that Congress and the president have taken with this legislation are significant and will directly impact our nation on every level, from the regulatory bodies now tasked with sorting through the ramifications of these measures to the traditional banks that provide the products and services that their customers need to help resuscitate and rebuild the economy.”

About the CBA
Established more than 119 years ago, the California Bankers Association (CBA) is one of the largest state banking trade associations in the country. CBA leads the way in developing relevant educational and legislative solutions to some of California’s more pressing financial and banking issues, including adult financial empowerment, identity theft, financial privacy, and financial elder abuse. CBA’s membership includes nearly 200 of California’s commercial, industrial and community banks and savings associations. For more information, visit www.calbankers.com.

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