Sunday, August 23, 2015
Since When Are Banks Over Regulated?
Robert T. Taylor, CEO of Louisiana Bankers Association of Baton Rouge, wrote a letter to the editors published in the New Orleans Advocate of August 20 titled, "Financial Literacy More Important Than Overarching Bank Regulations."
Mr. Taylor in his letter says the Dodd-Frank legislation congress passed after the Wall Street Banks collapse of 2007-08 to reform Wall Street also caught up the community banks and caused an unduly burden of regulatory overkill on those community banks. Taylor blames the Dodd-Frank legislation partially responsible for Louisiana losing 26 of those banks. He is silent on what part of Dodd-Frank was responsible for the closure.
Taylor says the Bankers Association supports the "too big to fail" policy and supports steps necessary to prevent another financial meltdown and bailout. But Taylor does not spell out or make clear exactly what steps he or the Association supports. Actually, the only way to prevent a rerun bank failure is to break up those Wall Street Banks because they are a monopoly. That is what "too big to fail" means. Of course Taylor being a banker won't recommend that even though he has to know those Wall Street Banks are a monopoly.
During the last two decades this writer has seen many Louisiana regional and community banks buy out or take over each other claiming the consolidation will make for a better bank with better service to its customers. But guess what? Better service never happens. It only improves the bottom line for their CEO's and executives.
Mr. Taylor's letter is just another self serving statement by a CEO who believes business should be able to operate without regard to any meaningful regulations.
This commentary written by Joe Lorio
Mr. Taylor in his letter says the Dodd-Frank legislation congress passed after the Wall Street Banks collapse of 2007-08 to reform Wall Street also caught up the community banks and caused an unduly burden of regulatory overkill on those community banks. Taylor blames the Dodd-Frank legislation partially responsible for Louisiana losing 26 of those banks. He is silent on what part of Dodd-Frank was responsible for the closure.
Taylor says the Bankers Association supports the "too big to fail" policy and supports steps necessary to prevent another financial meltdown and bailout. But Taylor does not spell out or make clear exactly what steps he or the Association supports. Actually, the only way to prevent a rerun bank failure is to break up those Wall Street Banks because they are a monopoly. That is what "too big to fail" means. Of course Taylor being a banker won't recommend that even though he has to know those Wall Street Banks are a monopoly.
During the last two decades this writer has seen many Louisiana regional and community banks buy out or take over each other claiming the consolidation will make for a better bank with better service to its customers. But guess what? Better service never happens. It only improves the bottom line for their CEO's and executives.
Mr. Taylor's letter is just another self serving statement by a CEO who believes business should be able to operate without regard to any meaningful regulations.
This commentary written by Joe Lorio
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