Now community banks are feeling the same squeeze.
The problem is the administration in Washington.
They want the banks and related institutions to pay for the mortgage market blunders committed by the Congress and the regulatory agencies.
Economic growth will be hampered by the unwillingness of small banks to make loans.
* * * * * J B K * * * * *
San Francisco
"We're hearing complaint after complaint," said Chris Cole, senior regulatory counsel for the Independent Community Bankers of America, speaking last week at the National Association of Attorneys General convention in Washington.
Bankers say a downgrade forces an institution to put more money in reserves, makes them reluctant to loan money and increases their FDIC premiums.
Those consequences are among the chief reasons many small businesses are finding it difficult to borrow money from their local, small banks, said Cole, whose group represents about 5,000 community banks with about $1 trillion in total assets.
http://legalnewsline.com/news/225958-community-bankers-decry-overregulation
