Senator John N. Kennedy (R-La.): Community Banks And Small Businesses Are Being Unfairly Made Victims Of Big Bank Failures
Feb 15 2017
WASHINGTON, D.C. – This week, Senator John Kennedy demanded answers from Federal Reserve Chairwoman Janet Yellen on why community financial institutions are being burdened with regulations that make it hard for small businesses to borrow money.
“If community banks were not the cause for the financial crisis in 2008, then why are they bearing some of the regulatory burdens from Dodd-Frank?” asked Senator Kennedy. “Many parts of Dodd-Frank apply to community banks, so the water is not 12 feet deep but 10 feet deep but you can still drown in 10 feet of water.”
Named after sponsors U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank, the Dodd-Frank Wall Street Reform and Consumer Protection Act, most often referred to as 'Dodd-Frank,' was passed in 2010 as a response to the financial crisis in 2008. Dodd-Frank's purpose was to place major regulations on the financial industry that caused the breakdown of the markets.