News Column

Vitter Urges Fed to Require Community Banking Experience

February 27, 2014



WASHINGTON, Feb. 27 -- The office of Sen. David Vitter, R-La., issued the following news release:

U.S. Senator David Vitter (R-La.) today questioned Federal Reserve Chair Janet Yellen about whether the Federal Reserve Board of Governors would benefit from having a requirement that at least one of its members have community bank or community bank supervision experience.

Click here to watch Vitter's questions from the hearing (http://www.vitter.senate.gov/newsroom/video-and-audio/view/vitter-questions-chair-yellen-on-supplementary-leverage-ratios-community-bank-experience-at-the-fed).

"The Fed has taken on an expanded role in bank supervision, but Fed membership has already dramatically shifted away from community bank experience and toward academic and economist experience. All the while, community banks have been getting the short end of the stick in the financial sector and it's only gotten worse since the financial crisis.They are literally being squeezed out of existence by Dodd-Frank and 'too big to fail'," Vitter said. "I think our financial system would benefit from requiring at least one member of the Board of Governors to have either community bank or community bank supervisory experience."

Vitter also asked about whether regulators will finalize a supplementary leverage ratio, which would impact capital requirements at the largest banks.

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Source: Targeted News Service


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