You're watching...
Empire National Bank CEO Douglas Manditch discusses how new regulations will impact the nation’s small banks.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Your financial institution whose business model is built on breaking the law cheating customers.
And making risky risky bets that could damage the entire economy.
You should have nothing to fear from these new rules.
To declare that only lawbreakers and sheets could oppose many new rules that.
Many say have dangerous unintended consequences puts critics in a very bad position.
The advantage is a CEO of a small bank here in New York so -- US -- -- would Dodd-Frank does that make you a cork.
Nothing said -- I mean you know we we run -- -- -- we run a bank that is there for the community.
We've play by the rules that are are out there we always have.
There's no way I don't know what the president gets off speaking like this about it boxes by the level to -- -- president's -- and I actually was I didn't.
You know I didn't hear it I read -- and I and I didn't believe it when I read it I mean.
I don't know of any bank and that sets out to do things -- Li I mean that's just not true.
I mean what we are faced with thousands of pages of regulation right now we don't even know what they're gonna be.
We're gearing up it's costly it's gonna full cost -- many banks small banks.
-- give up their independence and be merged because of this this.
In this regulation is just unfair well it was needed to the president took it to this -- level I think because he's trying to shut up a lot of his critics will they shut you well no not at all make me speak out even more on what about your friends other bankers they're all I mean everybody's upset with what goes on how we get blamed for all this stuff.
We we just.
Don't feel it's fair we haven't felt it was this since he saw -- take making these attacks and this is really that the cap -- two to all of this I mean realistically.
Because we just oppose something net that's been put in place with crooks mean that there's no.
There's no sense to by the way they were also -- there it's it's not just the Republicans that are going after this for the bankers that are -- regulations are too complex senator Bill Nelson a Democrat also questions whether Dodd-Frank is too complex so I mean they're people.
Does that make senator Nelson a crook as well.
Why you know listen I think that when.
When congress passes bills they don't read now have been written than they have some serious problems that they have to deal with themselves.
And I mean we have bills that -- thousands of pages long that have never been read that people don't understand haven't been interpreted there's nobody.
Directing.
The new consumer group at this point in time the agency.
That's their fighting in congress with that's still I mean everything this crazy and mean everything's up in the -- is no consistency.
There's nothing you can depend on and that's part of the -- -- Problem of them depend on is that the big guys who have do have a lot of lobbyists the president was focusing.
On the lobbyists of the banks and how they always get what they want and there's a certain amount -- true to that but in fact that's exactly.
Why some of the smaller banks like yourself don't like Dodd-Frank there were so many cut -- For the big guys who can afford the big guns the lawyers -- a lobbyist that -- you guys -- actually based.
And tens of billions of dollars I'm tens of millions of dollars a year lobbying they get what they want to but aren't they still too big aren't they still too dangerous to this economy.
I mean I think that you know without any question you've got systemic risk and those big four banks there's no question.
What it is what it is emphasize what you're saying the biggest four banks in this country JPMorgan chase Bank of America Citigroup and Wells Fargo are now have assets equaled it.
62%.
Of all their assets in commercial banks.
That's actually up.
From 54% five years ago so the point is Dodd-Frank.
Was constructed to prevent this too big to fail stuff these banks that are too big an effect it's going operas arguably there are getting more asset.
They're bigger and bigger and if there's another calamity and one of these banks have to be rescued or saved in some manner.
Who's gonna take a Malvern -- what those three takeover of one of these big banks it's gonna just be that much more massive for three banks.
I mean systemic risk is here it's not going away those banks need to be broken up.
They just need to be made small.
And you know within.
We -- that's what Dodd-Frank was supposed to do that's not it has not going -- exactly the opposite direction -- -- -- -- disagree with the president point that out to the president -- -- and a liar and a -- -- you've heard me say before I think there needs to be some form of Glass-Steagall brought back and into play so that.
Insured institutions are separate from on putting a big wall between a Wall Street gambling palaces and the commercial -- -- you know there's no question about it.
And with all of this just gets worse and worse it makes it harder for us a small banks community banks to do what we try to do.
Who speaks for you Doug who I mean we know who speaks for the big guys they have their lobbyists.
They come out and they they have private meetings with a president who speaks for the smaller bank will be independent bankers association of America speaks mainly for us -- that have clout.
It it has clout but it doesn't have the kind of clout.
That the big banks have quite honestly David I mean independently they spend tens of millions of -- lobbying every year.
There's no but there's no association that has that kind of they got that that the big guys got their cutouts they do they have been excused from certain things right that are better killing of by the way art is Dodd-Frank.
Is it enough of a threat to use of that a -- which had a business.
It's not -- that much of a threat to us that it would put us out of business but there are a lot of small banks in this country smaller than we are.
That it could put out of business.
Regulators -- very tough right now.
It's a very difficult time you know I I read somewhere and and it did it you know they who -- that he.
Blame for not seeing this -- -- turning now heads.
Listen nobody -- and people will -- Dodd and frank wall warned about this and they and they left I'm and -- time again Doug man -- CEO of empire national bank best of what you've done thanks.
