News Column

Vitter Amendment Requires Community Banking Experience at the Fed

July 14, 2014



WASHINGTON, July 14 -- The office of Sen. David Vitter, R-La., issued the following news release:

U.S. Sen. David Vitter (R-La.) has filed an amendment to the Terrorist Risk Insurance Act (TRIA) that would require the Federal Reserve Board of Governors to have at least one member with community bank or community bank supervision experience. TRIA is being considered by the Senate this week.

"The Fed's role in bank supervision has greatly expanded, but Fed membership has dramatically shifted away from community bank experience and toward academic and economist experience," Vitter said. "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 and megabank bailouts. They're literally being squeezed out of existence by Dodd-Frank and 'too big to fail.' Our entire 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 first introduced the bipartisan "Community Bank Preservation Act of 2014" on April 10. In February, he pressed Federal Reserve Chair Janet Yellen about whether the Board would benefit from having a requirement that at least one of its members have community bank or community bank supervision experience. Click here (http://www.vitter.senate.gov/newsroom/video-and-audio/view/vitter-questions-chair-yellen-on-supplementary-leverage-ratios-community-bank-experience-at-the-fed) to watch Vitter's questions from the hearing on February 27.

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Source: Targeted News Service


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