Financial reforms send shockwaves through banking industry, by Mike Stoetzel, partner in Clifton Gunderson LLP’s Middleton office and the company’s financial institutions practice leader for Wisconsin
It’s been described as the biggest overhaul of Wall Street since the Great Depression. Approved by President Obama on July 21, the Dodd-Frank financial regulatory reform bill is an attempt to reallocate the power from Wall Street to Washington and prevent future financial crisis. The bill is expected to dramatically impact all banks – large and small – and the mere mention of Dodd-Frank is sending shockwaves through the banking industry.
At first blush, the biggest burden seems to be on community banks because of new rules and regulations that will raise compliance costs such as training, staffing, processing documentation and disclosures for consumers, as well as external examination. Community banks have stated that the bill will hinder their competitive ability to lend.
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