Fine Points Written By : Camden Fine , President and CEO of ICBA
New Go Local Initiative : ICBA and the Farmers Market Coalition
Fine Points Written By : Camden Fine , President and CEO of ICBA
Cause and Manifold Effects
Consider it a modern Newtonian banking principle of action and overreaction . For every arrogant , boneheaded or downright abusive misdeed by a megabank that ’ s uncovered , count on a disproportionately excessive and convoluted response from Washington , D . C . Though driven by manmade institutions rather than nature ’ s forces , this phenomenon has proven widely predictable over the years . It ’ s also a negative regulatory feedback loop caused by the rise of the too-big-to-fail financial Frankensteins themselves .
Over the past 30 years a steady stream of megabank and nonbank financial scandals and consumer abuses have prompted major corresponding legislative and regulatory backlashes . Unfortunately , those policy responses have created layer upon layer of unnecessarily costly and distracting regulatory burdens for community banks — the very institutions that never strayed from treating their customers fairly and pursuing safe , common sense business practices .
But this tsunami of disjointed , almost ad hoc ocean of regulations meant to curb the bad behavior on Wall Street — but which is actually drowning only Main Street — is doomed to fail . That ’ s because today ’ s regulations don ’ t address the problem ’ s root cause — that Wall Street ’ s financial institutions have become so large that they ’ ve become ungovernable and unaccountable . The megabanks and giant nonbanks , relatively unburdened by meaningful market or regulatory consequences , simply pay their fines when they get caught and move merrily on . In the end it is community banks , the innocent bystanders , that become collateral damage . And in the process Main Street America ’ s economic vitality dims just a bit more as well .
Addressing excessive regulatory burdens bearing down on community banks is and has been an urgent priority for ICBA for many years . That ’ s why ICBA developed its Plan for Prosperity , a legislative regulatory relief platform for community banks and thrifts for the 113th Congress . Last month hundreds of community bankers made the regulatory plan and its provisions and objectives a central discussion point with members of Congress during ICBA ’ s Washington Policy Summit . And lawmakers appreciated the message .
Fortunately , ICBA has been making significant progress in convincing Congress and the banking agencies to implement a proportional and tiered regulatory system to stop the current “ one size fits all ” regulatory approach that only results in punishing community banks . With ongoing efforts such as the Plan for Prosperity we will undoubtedly achieve more progress soon . But as you and ICBA know , our efforts cannot be fully successful until we eliminate a primary source of our regulatory troubles — too big to fail !
ICBA has aggressively — and alone among the national banking trade associations — led the debate in Washington for implementing more effective policy action to truly end too-big-to-fail . Of course , there are manifold vital reasons for breaking up the megabanks , including preserving the safety and resilient diversity of our U . S . financial system . But another important reason
6 CBI Banker Update . May 2013 is eliminating the major cause of too many regulations in the first place .
For many years , far before the most recent Wall Street financial crisis , ICBA repeatedly warned Washington about the terrible consequences that would inevitably result from a series of unwise government policy decisions that inevitably led to today ’ s monster too-big-to-fail institutions . We understood , as everyday Americans now sadly understand , the cause and effects of overconcentration of financial power . Regulatory overkill is and remains one of those effects , one that will only go away by truly ending too-big-to-fail . Ultimately and fundamentally , this is what Washington ’ s policymaking can and must address .
New Go Local Initiative : ICBA and the Farmers Market Coalition
ICBA and the Farmers Market Coalition ( FMC ) announced that they are joining forces for the opening of farmers markets across the country . Their goal is to help educate consumers on the benefits of building a more sustainable local community and life by banking , shopping and dining locally .
“ Community banks have helped local farmers and small businesses grow for years , so working with the Farmers Market Coalition to spread the positive Go Local message makes just as much sense now as it would have 50 or 100 years ago ,” said Bill Loving , ICBA chairman and president and CEO of Pendleton Community Bank in Franklin , W . Va . “ By banking , shopping and dining locally , consumers can make a big impact in their lives and in the lives of their neighbors — all while helping to build a more sustainable and robust local economy , which means more local jobs and more local prosperity .”
This spring and summer , CBI , ICBA , and FMC will spotlight successful partnerships between community banks and farmers markets across the country . As part of ICBA ’ s Go Local initiative , the success stories will highlight these mutually beneficial relationships , while educating the broader consumer base on the benefits of banking , shopping , and dining locally .
If your bank has partnered with your local farmers market CBI and ICBA would like to hear your story . Email Laura Sinnwell with CBI at lsinnwell @ cbiaonline . org and Jessica Etter with ICBA at jessica . etter @ icba . org .
For a directory of farmers markets across Iowa , go to the Iowa Department of Agriculture and Land Stewardship ’ s website at www . iowaagriculture . gov , click on the “ programs ” page , and then on “ farmers market .”
If you are in need of additional “ Go Local ” window clings for your banks and / or the local businesses in your community , please call the CBI office at 515.453.1495 .