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So our top banking regulators testify before the senate banking committee today and one of the really hot topics this state of Dodd-Frank.
Which our next guest says is 9000 pages of rules and regulations that are just make it harder for community banks to do their job and lend people money.
Joining us now former Oklahoma governor Frank Keating.
He's also currently the president and CEO of the American Bankers Association.
Governor -- -- being with us right now.
Our pleasure Jason thank you this is really killed in the community banks because I mean you got Basel III -- -- you name me you got a lot of stuff coming on these little guys and there actually in it whether the lender and that.
What they really do because banks have never been -- -- -- banks have a lot of capital they have a lot of lending willingness.
But there's just a -- Mountain slide if you will and rules and regulations coming from Washington you mention Dodd-Frank 9000 pages.
A proposed and final rules.
And -- and the average community bank has 37 employees so that's you know stacks upon stack of Danielle Steele novels.
And you have to read every word so what does it do.
Lending it adds a huge cost to the bank some 20% now -- operating revenue is compliance.
And that's not good for -- obviously we believe in regulation.
Regulations appropriate safety and soundness is essential.
But sometimes enough is enough.
He had reading Daniel some houses enough to carry it did.
This hearkens back to sarbanes Oxley doesn't -- the little guy got her didn't -- a whole heck of a lot to prevent the big guy from getting in trouble again -- Look we're not -- about too big to fail we're not hearing about all the things that.
We're supposed to be preventing from the 2008 financial crisis right.
Well hopefully -- too big to fail problem will firmly and finally be solved obviously title to and and Dodd -- a big part of that and hopefully it will work but the reality is you mentioned Basel III.
Our European friends say watch dot Russell three should only apply to banks that are in the international lending marketplace but.
The Basel III is being applied to every back in the United States that's enormously suffocating also extremely difficult we -- we get some relief there.
But again they community banks of this country.
The that do really most of the lending that -- Body and soul together from sea to shining -- if you don't have communities banks that communities blow away.
Those are the ones that ought to be loosened up on what does have an opportunity to land.
Then obviously -- banks of all sizes are important for the success of the United States we need that.
Make sure that we have a regulation that Smart and not excessive for the -- when you processes and means you propose we just get rid of Dodd-Frank altogether.
No I think the election.
Certainly show the Dodd-Frank would not any time soon be repealed and I but it certainly ought to be reformed for example -- bipartisan policy center.
Which did the Rivlin -- -- debt deficit panel I was on the housing commission they have a Dodd-Frank commission.
People of both parties academics former regulators looking at what needs to be changed to die in Dodd-Frank.
So that we can be competitive and land and get the economy.
Moving again so right.
Yeah hopefully in the next several months we'll have an examination of things like those issues your document particularly some of what's coming out and qualified mortgage and all of five real estate mortgage.
And the consumer financial products bureau that's changed six here's a little bit talk about -- securities has been -- really hot topic.
Banks getting -- left and right I mean really worrisome for banks isn't it.
But it really is because my background at it was a national securities and FBI agent in -- justice and treasury official.
But I think it's really important to recognize.
The denial of service is one thing when I try to get online and I can't.
It's quite something else if there's -- official governmental or international criminal conduct which basically shuts down the financial system.
And that's -- should frighten all of this.
I'm very pleased that the president did at present an executive order hopefully they'll be some legislation -- follow.
The private sector is working very closely with the government it's good now for us to know that the Treasury Department -- is in charge and we can work together to.
Reduce the likelihood of these kinds of attacks.
And make sure that if they do occur -- -- to fend them off this is very serious stuff.
It certainly -- and hopefully everyone is paying attention to governor Frank Keating you certainly -- thank you sir for being with us.
Thank you -- break.