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Dodd-Frank the financial reform bill was signed into -- two years ago this week believe it or not.
The landmark -- was supposed to make banks stronger but instead actually strangled many of them especially those small banks.
Steered away and joining me just a second here Doug -- chairman and CEO at empire national bank.
Doug great to see here you know we talked a lot about Dodd-Frank.
We -- a lot about its impact on small banks and and big banks you say it's been devastating.
For small banks well last year our total compliance cost us 9% of our total revenue.
-- -- small bank but 9% of total revenues an awful lot of money.
What it used to be pre Dodd-Frank maybe ten years ago now much less like -- and -- stuff was much less than it is today I mean it's just never.
It's never gotten to this level before and we don't even know really what what the circumstances -- -- be when all the regulations are written.
Dodd-Frank is is very intrusive it reminds me of you know so many other bills that that Congress's -- so many different regulations.
That never did the job that it was supposed to do.
You know I think the big banks have really gotten off the hook here it seems almost like the laws are there to protect the big banks.
And whatever happens to small banks so be it at the end of the day that was really the focus of this legislation -- -- -- It was was supposed to be that big banks but they've but they've gotten.
Far better results from this than than we do a small community banks to -- fact is I think it's very threatening to the whole look community banking banking industry.
The amount of -- new compliance regulations that'll -- coming -- I mean when when they talk about the Consumer Financial Protection Bureau.
They say that we're exempt from because we're not ten billion dollars and assets.
But there's gonna be unintended consequences there's no question about it there's going to be more more compliance that our regulator the Office of the Comptroller of the Currency is gonna put on us.
Because of the eight.
The new regulations that -- -- so.
Absolutely you know that debt coming down the -- have just -- couple weeks ago -- the Consumer Financial Protection Bureau came out with 11100 pages of regulation on mortgages.
All kinds of requirements.
And it you're saying you're not you don't have to abide by those -- you're afraid it's coming down the right.
We don't have to abide by them specifically but you can bet that the OCC.
Is going to certainly adopt and make sure that banks -- hearing told -- you know I think its entry seeing you told our producer that Dodd-Frank probably makes it more likely that they'll be a problem down the road because it's not gonna prevent the next bubble right now.
It's not an end as I've told lost supervising regulating.
Models that want more more models and -- of everything that we do.
The problem is I mean that.
Supposedly the best -- -- this generation Jamie -- when he speaks about his models they missed everything they never they never depreciated home mortgage values.
Even this last time with with the trading problems that they had their models didn't disclose the issues that they ran into.
So modeling -- grade and they have and I'm sure they chase has huge amount of mathematical genius is that they employed but.
It didn't say them that they kept running -- problems not getting out of them because models can't put the human element into it now.
Well here's what I'm worried about I'll tell -- is somebody who covers personal finance all the time.
What are the alternatives for consumers especially in our small banks.
If you can't get a mortgage from a Bank of America if you can't get a refi a good place to go is a small lender and I'm afraid these lenders are open up hole in their horns.
These are so afraid of the unintended consequences of -- Franken this Consumer Financial Protection Bureau.
My and -- senator enemy not I think that happens all the time the big banks they.
They they win the day they spend tens of millions of dollars -- in.
They they end up getting into a situation where they and as was just shown with chase they take huge risks they borrow for nothing.
They make a ton of money too big to bail too big to fail.
If you wait too big and too big to bail that's another problem now they're so large there's so much larger than pre Dodd-Frank.
By bailing them out.
We can't do that he would -- it's my old song you know we need some kind of resurgence of Glass-Steagall.
We need a separation of commercial banking.
Investment banking insurance they need to be separate.
It wouldn't would make for much more competition much better competition.
What everybody but -- the army's not for this reform act resolutely.
Thanks for coming on the show -- my pleasure having you here thank.
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