This was a matter brought to me by the enjoyed -- vote. And it -- comedy Joan mister Scott remembers that it -- committee because to bear. Understandable concern that the impact bank -- you have in... See More
This was a matter brought to me by the enjoyed -- vote. And it -- comedy Joan mister Scott remembers that it -- committee because to bear. Understandable concern that the impact bank -- you have in the state they represent. I am very supportive I don't want to make clear that nothing in the passage of this should be taken as -- criticism of the FDIC -- -- have been very impressed. With the leadership. That was -- to the FDIC by the recently. Retired chair -- would bear. An appointee of President Bush. Who was not only I think you're a first rate chair -- the obscurity but gave us a great -- -- -- would budge from Dublin's financial reform. Bank failures are an unfortunate fact of life we don't want them to be. -- unnecessarily. What neither can they be avoided and obviously in the overwhelming majority of cases the problem. Is in the business community the right to fail -- we must remind ourselves -- part of the right to do business. Having said that I agree that what the FDIC -- should be very transparent. And there and one aspect of what the FDIC does not directly affected this bill but it's one that I that you have bipartisan. The agreement on in the committee namely an honorable mention there's. Because of its impact on our economy. Understandably. Bank examiners. Felt very sensitive to criticism that during the first part of this century. They did not say no to enough loans loans were made the mortgage feel that shouldn't have been made. What you not retroactive legal back and -- that by now being too tough and denying loans -- should be made. And we have had -- frustration on the part of members of our committee because we hear reports. From people in the field in the community banks. That bank examiners are being too tough no one want to encourage improvement lending. And the bank relatives tell us to agree with that but I want to take every opportunity I can remind the bank examiners that if they run into a situation. In which no bank loan. Ever default -- they have been too tough. Because perfection is unattainable. -- -- wanted to would minimize the number of failures but not. Move them out all together with a regime that will -- good loan from being. Having said that to go back to that. It is appropriate that we get a full study of what happens when a bank failed and we would ask the F -- when they art dealing with a failed bank. To take into account the needs of that particular community so that the disposition. With one some sensitivity. And that is right because -- I would just say with regard to community banks. There was -- continued -- could never reported -- -- -- -- -- in the financial reform bill climate here. There was several provisions that we're in there at the specific request of the community banks to help them for example. One of the disadvantaged community banks that -- Is that. People with a large amounts to deposit would go to larger institutions because the limitation on deposit insurance. Would make -- a little worried about going to a community bank we increase that number of 350000. -- -- that -- -- an advantage. For community banks over the -- -- -- We also for the first time and I instantly change the way in which assessment -- On banks for deposit insurance. By introducing -- risk factor. Before the bill was signed it would -- be deposited. Which -- the same amount of insurance. Cost now there was Davis factor which means that dollar for dollar the larger institutions -- -- give -- your activities will be paying more than the smaller institutions. We also extend the period I -- like to make it permanent -- have the votes to do that the transactional accounts so yes we are aware of the importance of a community -- I would just. Would repeat what I said. That the first but I have found surprisingly that not everybody that's -- everything -- the first. This is not meant as a criticism of the -- judge city. It is a recognition of the importance of this project being open and that people understand it enjoyed. To the general would -- -- but there was smoke don't -- but to -- they -- serving their constituents well by -- these forward and I hope the bill passes.
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