A sweeping overhaul of the nation’s financial regulations was sent to President Barack Obama’s desk today after a year of partisan struggles and delicate cross-party courtships that promised more and delivered less.
What is promised is that financial entities will be held to a higher degree of accountability.
Unfortunately for most banks in Mississippi, the bill could be a burden that will hurt its customers — like you and me.
In a story in the Mississippi Business Journal this week, we talked to the Mississippi Bankers Association, which is among bill opponents who are angry that the bill, if passed, would punish community banks for the bad behavior of big banks, mortgage brokers and non-bank lenders. The bill will make less credit available and increase bank costs.
Community banks are those with assets of less than $10 billion, which includes most banks in Mississippi.
Mac Deaver, MBA president, told the MBJ the bill is bad for Mississippians.
The community banks are going to get the brunt of this, and their examiners are going to examine them in a politically charged atmosphere,” Deaver said. Banks will lose money in compliance costs.
On the House side, Second Congressional District Rep. Bennie Thompson of Mississippi voted for the bill despite the urgings of experts in his home state that his constituents will be hurt by the bill.
Despite repeated phone calls and e-mails to Thompson’s offices about the financial overhaul and the impact on Mississippians, the congressman did not respond.
In fact according to a Wall Street Journal story today, the financial overhaul will hurt American farmers.
Oh yeah, Thompson represents most of the Mississippi Delta where a large majority of Mississippi’s farmers live.
So Thompson voted for a bill that his state’s bankers, by and large, say will hurt them and a majority of their customers, and he has voted for a bill that will wreak havoc with the finances of the state’s agriculture industry.
Good move, congressman. You have managed to help pass a bill that impacts more than 40 percent of the Mississippi economy for the worst.
And you have no comment.
Contact Mississippi Business Journal editor Ross Reily at firstname.lastname@example.org or (601) 364-1018.