Lost among the scandals, name calling and sexual exploits of this Presidential election cycle are some very serious issues.
As community banks and credit unions, how will the November elections affect us?
In a very general sense, according to Ballotpedia.org the candidates positions on Wall Street and banking policy are:
Hillary Clinton supports Consumer Financial Protection Bureau action to end unfair practices on Wall Street, advocates for reform of the Federal Reserve and greater oversight of the financial industry. She would also permit large banks to fail if there were another financial crisis and would impose a risk fee on big banks that engage in risky behavior.
Donald Trump would reduce the power of the Federal Reserve and allow Congress to audit its decision-making. He has also suggested buying back government debt at a discount if interest rates go up and repealing the Dodd-Frank Act.
More specifically:
Hillary Clinton’s plan includes:
- Make clear when community banks and credit unions are exempt from regulation and cut down on regulatory “creep.”
- Avoid duplicative and unnecessary examinations for community banks and credit unions.
- Streamline safe mortgage lending by community banks and credit unions.
- Simplify capital requirements for community banks, while making sure that all banks remain appropriately capitalized.
- Streamline reporting requirements so that they make sense for our smaller banks.
- Ensure that the Federal Reserve Board of Governors includes a member with expertise in issues facing smaller financial institutions.
- Ensure tough and fair enforcement, regardless of bank size.
Source: HillaryClinton.com
Donald Trump’s plan includes:
- Embrace the reinstatement of the Glass-Steagall Act
- Republican candidate Donald Trump has not specifically addressed community bank plans in his economic vision, but has discussed wanted to break up the big banks. Primarily, Trump’s plan is to ease regulatory burden on small businesses across the board, including community banks.
Sources: American Banker and Dodd Frank Update
In review of DonaldJTrump.com, I was unable to find any mention of banking plans.
This campaign season has spent far too much time looking backward at each candidate and not enough time focusing on their plans moving forward. As banking professionals, I wanted to help focus on issues that really matter.
I got out and early voted today. I hope you’ll make your trip to the polls this year.
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