You're watching...
Florida Bankers Association CEO Alex Sanchez on the impact of Moody’s downgrades and regulations such as Dodd-Frank on the financial sector.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- here is a chart of the financial sector ATF and the regional bank.
ETF now the financial sector is down about four and a half percent while the regional banks are up.
More than.
5% mrs.
over the last year Alexander says as the Florida bankers association CEO president he joins me down a Fox Business exclusive.
You know I've spoken -- box this is before about regional banks in -- to in the Florida area right.
How concerned were you about this downgrade yesterday we've got the news that was.
What wall -- shows that our economies not back and and our banks we -- a big strong big banks strong sector we need to have for our economic recovery.
When you look at the top fifty banks in the world now there's only like three American banks on there -- so.
We need our big banks to be strong track to have an economic recovery and so obviously that was very disappointing what happened but it emphasizes.
The other side of our industry which is 60% of our business loans come from community banks are ten billion dollars or less so they play a very critical role.
And in creating jobs in our economy.
They until now what Clinton what things that was talked about yesterday that Moody's downgrade came through with -- -- was gonna tighten up but the larger banks community banks would benefit do you think that that's going to be okay is that yes it might make on the today doesn't think money isn't your problem.
OK I think you yeah well you know lending is is B of the demand because of the recession you know is an issue but my concern Cheryl is Dodd-Frank.
Our community banks you know assess the public -- understand that the 7500.
Pages of regulations and rules.
That this gonna cripple that could cripple our our industry especially our community -- what have a negative effect on prosperity and job growth and and because they're hiring that hire more lawyer exactly deal with what's coming there actually some of -- written some art community banks have more compliance staff and they do wonders which shows you the system is out of whack so.
I I think you know Washington -- understand that the banking sector is so important for the economic recovery of our country.
As the banks goes so -- our economy and vice -- Versa.
What about what about the man -- because this seems to me kind of and a mixed picture little bit disagreement on whether or not small businesses are actually trying to get loans.
But what are you saying what are your members in.
You know what they're saying -- they wanna be there they they are there for their clients and their there's a trusted advisor.
Demand this -- soft because the uncertainty of Washington -- what's going on and lot of small businesses are holding back now until after the November election but.
But the credit needs -- -- an F five B in their monthly survey always shows that 90% of their.
Small independent business -- in America show that their credit needs are being mad at over.
Overdraft protection.
As most popular things -- they think they're being asked for -- exactly this is part of the consumer finance protection bureau that bureaucracy created that's gonna cripple our community banks.
We need to extend the tag program which insurers.
These business accounts.
Most of these monies are held in a lot of these monies a trillion dollars held in community banks by small business owners.
Congress needs to extend that.
Before the December 31 -- -- of this year.
They're more focused on Dodd-Frank right now well -- let me ask about is gonna get your take on some of the the names that we've seen some of the best performing regional banks that received we have banks that we've -- regions financial's one UB financial was another name that would be watching right stocks -- moving higher sun trust right you know.
We are you able from your vantage planning -- -- running Florida but can you kind of give me a sense of so -- the winners are gonna be -- -- some of the losers are gonna be because we're still saying a lot shutdowns unfortunately.
Yeah and then they as you know they've they've greatly been reduced well unfortunately are still some but they've been reduced.
I think you know obviously investing in banks those who do today will be very happy a year or so from now I think it's a great investment long term.
And but again -- the region on the community banks play a vital role in our economic recovery in this country we we have.
Choices for the consumer that no other country offers it's it's really a unique American phenomenon.
I think -- some of the larger banks would start to go after some of the smaller community banks.
But not change the names that they can get access to that business -- an an and it crazy world can -- -- -- It could it's happened in the past and again my concern would Dodd-Frank.
That a lot of community bankers are gonna exit from the industry because of the over regulation.
That that it's cause -- community bankers and and so they might there was a recent article is I think you know.
That showed that a lot of community bankers may be selling out may be getting out of the business because of the over regulation.
The as a commodity is said to me at camp when many lawyers and hiring right at -- for a lawyers and the hiring tellers opinion writer Alex Sanchez has great to have you on the show thank you -- -- see you again now thank you -- me on Carol.
