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Press Releases
Reaction to President Obama’s Comments on Financial Regulatory Reform
Jun.16.2009
Denver, CO – President Obama’s proposal is a good starting point for debate of the essential reform of the regulatory system for financial services, which needs to be addressed this year. 2008’s turmoil shows that we clearly need a systemic risk regulatory approach, a mechanism for resolving troubled systemically important financial entities, and regulation of nonbanks that emulates successful regulation in the banking sector. Good solutions require an accurate assessment of the problem. We were pleased to see President Obama made several distinctions between banks and nonbanks (all lenders other than regulated banks) – specifically pointing out strong FDIC protection of bank customers, and banks’ superior lending standards and regulatory structure. Focusing on the source of the problems, much of his comments focused on nonbanks being held to the same standards that already apply to banks. In addition to positive elements of the proposal, we have significant concern with the proposed creation of a Consumer Financial Protection Agency which we fear could add layers of unnecessary regulation that would hinder banks serving customers, versus focusing on nonbanks. We also have concern about the regulatory consolidation that eliminates charter choice and hurts the dual banking system which hasn’t been identified as problematic, and which we believe must be continued. ### The Colorado Bankers Association represents over 90% of the $100 billion in assets within the 190 Colorado banks. On behalf of the 23,000 men and women who work in Colorado’s banks CBA works with government seeking a better banking industry in this rapidly changing environment. CBA also provides banking-specific information and education, offers bank insurance, anti-fraud efforts, and numerous other miscellaneous services. MEDIA CONTACT: Don Childears, President/CEO 303 825 1575 Off-hours contact: 303 249 3541 Tim Powers, Director of Communications 303 825 1575 Off-hours contact: 303 709 8061