Tuesday, November 22, 2016

Trump Advisers Seeking Potential Fed Nominees From Community Banks

Advisers to Donald Trump's transition team have asked a community bank trade group for the names of three small bank executives, reports The Wall Street Journal.

Community bank executives?

Trump and his team have no understanding of the Fed or what needs to be done.


1 comment:

  1. Many months ago, perhaps more than a year, the president of the Am Banker's Assoc complained about Dodd/Frank; said ~90% of the ABA members were “small” banks (as I recall, those with assets of less than $1B); avg number of employees of 37; & those banks did most small business lending. He further noted Dodd/Frank resulted in so many regs which included penalties for mistakes including in lending that his members (1) could not possibly comprehend the massive Dodd/Frank & (2) were afraid of lending.

    2 Fed Res Banks, 1 year apart, issued warnings that our start-ups were declining as a result of regs which put our job growth & innovations in peril harming our economy. One of those FRB reports said 40% of new jobs came from new business less than 5 yrs old.

    Other reports noted that Dodd/Frank resulted in significant deposit volume moving from community banks to the mega banks. Others that new community banks are not forming.

    The slow down new community bank formation & of new business start-ups preceded Dodd/Frank but it has exacerbated the problem.

    Dodd/Frank is congress's baby; however, community bank executives could have some useful comments on our banking structure, its regulations, & how to increase small business finance & start-ups.

    It is understandable some economists know enough to do everything right without input from non-economists, like say, community bankers, but a non-economist Trump could reasonably think he'll get some useful advice. Not everyone believes economists have everything right.