Quote:
Originally Posted by sebastian_dangerfield
From my outside NY perspective, community and small bankers have a uniquely strong hatred for Obama. A lot of the regs aimed at the big banks are applied in a one size fits all fashion to the little guys. And the new Dodd Frank rules regarding mortgage and loan processing frustrate the shit out of them. I don't know it's true or not, but that's a constant bitch I hear.
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ok, look, I know your thing is blowing gonzo smoke for your own entertainment, but do realize, when you talk about community bankers you are talking about me and my family, and you should realize that this is utter bs.
The one size fits all approach to regs for big banks and small banks is a theme that crosses administrations, and Bush was if anything more guilty of it than Obama. The area where this is particularly true is FDIC fees, where small banks feel like they're subsidizing the big banks, but the fault lies at least as much with the Republican Congress as the Administration, as anyone reading their trade association lobbying pitches will know, and both are targeted for lobbying to get something more pragmatic in place.
The people who get frustrated on mortgage and loan processing are the low level lending officers who get more paperwork. Complaints about paperwork are just part of their lot in life; it kind of comes with the territory. But mortgage paperwork isn't a major institutional issue for community banks, it's a mid-level manager issue that they can handle.
The people actually running community banks are more focused on capitalization levels and what is being required there; that is where there is a real interaction between the regulation and bank performance. You'll find people who run mediocre banks are vastly more frustrated with it than those who run good, solid banks. Those with good banks want some exceptions to the higher cap levels for high performance, low risk banks, the people with the bad banks want lower levels across the board, and we all know that is actually a danger that will drive up the insurance costs and potentially hurt the industry.
Warren is indeed hated by many in the community bank community, but most of the group doesn't view Obama and Warren as one and the same. And oddly, Warren has taken a lead on a few big bank/small bank issues, so she's trying to make inroads, but I think it will be an uphill battle for her.
