United States Sen. Ben Sasse supports moves to ease banking restrictions on smaller, community banks.
Sasse, a member of the Senate banking committee, has voted in favor of the first revisions of the Dodd-Frank law that slapped added regulations on financial institutions in wake of the 2008 financial meltdown.
“It will be good if we can get it done,” Sasse tells Nebraska Radio Network. “This is an issue that shouldn’t be partisan, but right now is looking, unfortunately, too partisan.”
Congress passed Dodd-Frank in wake of the 2008 financial meltdown that plunged the country into recession. The law added requirements to mortgage lenders, increased the inspections of financial institutions, and tightened the standards which had to be met by those seeking a mortgage.
Sasse says though there are approximately 6,700 banks and lending institutions in the country, only about 600 can be considered moderate to large.
Dodd-Frank, according to Sasse, treats small, community banks the same as the large banks. Sasse insists the small banks had nothing to do with the financial crisis that triggered the recession.
“And yet they’re suffering under mountains of new regulatory frameworks and paperwork burdens and compliance expenses and many of them are looking at getting out of the mortgage business, for instance, became of this and it’s making it hard on Nebraska communities,” according to Sasse.
The revision bill is called the Financial Regulatory Improvement Act of 2015 (FRIA).
Sasse says Republicans are on board with the revisions, while Democrats have been following the lead of Massachusetts Sen. Elizabeth Warren.
“Unfortunately, Elizabeth Warren persuaded all of the other Democrats on the committee to vote against it. So, it only advanced 12-to-10 out of our banking committee,” Sasse says. “I hope on the full Senate floor more Democrats will look to their communities as opposed to just Elizabeth Warren’s politics.”