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Quickly down what we find out how actual bankers feel about this proposal joining us now from Boston is Stephen -- He is founder chairman and CEO of Chicago Bancorp -- your reaction.
I think I think that well for (%expletive) morning Brian date and I think that the comments that that -- -- make a lot of sense the key is is that we need to focus.
This new legislation on high risk.
Tight security is not the low risk back to basics every day type of mortgage that that community lenders like myself.
Make two creditworthy Americans if we don't pay attention to this and if we allow Americans.
Two or community banks rather to be required have a five or five or 10% risk retention on these low risk.
There will be no community landing.
There will not be the stimulus into the community to friends -- small businesses that are gonna turn this economy around by driving the types of jobs that need to be created to get -- out of the mess that we're in right now.
Would you think that it's -- it has any shot of moving into law.
The market seemed to breed of small sigh relief when congressman Barney Frank came out yesterday and said that it would be.
Implemented over a period of what three to five years but nevertheless do you worry.
Well of course I worry and I think most importantly.
Need to worry that it's really that simple if you take a bank that's simply a hundred million dollars in size.
And they have five million dollars in equity which used to be the requirement now the government's trying to increase that.
That equity requirement to eight million dollars -- that bank if it's extremely efficient is only making a 1% return on its -- In other words a million dollars a year.
-- all the sudden the requirement is raised from five million to eight million.
It would take that -- three years to meet that new requirement so what's happened.
Those banks have to stop lending and if they stopped lending that's bringing all of our economy to a grinding halt.
Look these 8000 community banks didn't get involved.
-- in this high risk hedge find type activity.
Instead they they go to church with the people that are their customers they go to school with the people -- customers they seem in the coffee shop and have breakfast with him every day.
He's a real American small businesses that need to be supported.
To move our company in the right direction and -- get that money back on the street this gonna start to lubricate the wheels of -- -- bottom line -- Steven will it impact lending either positively or negatively from banks like your some smaller banks.
It will absolutely be devastating it is critical.
Absolutely critical I asked the members of congress reach out that common sense folks like Bob Dole in the tenth congressional district and and professor David -- at Harvard University -- can explain to them.
The type of impact that this -- have not only on community banks and mortgage banks and and small community lenders but on the entire economy if this type of legislation passes.
All right Stephen caught for utter travesty of Chicago Bancorp Steven.
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