WASHINGTON, D.C. — This week, U.S. Representative Ed Royce (R-Calif.) spoke on the House floor in support of H.R. 10, the Financial CHOICE Act which will provide much needed relief to California's community financial institutions in a responsible and proactive way. Copied below are his remarks.
“I would like to make the point, I’m from the state of California and that has long been the innovation capital for new ideas in America and for high-tech. A place where a person with an idea, hard-work and a little startup capital can grow a business. We have had a major problem with respect to our community banks and our credit unions, and that is they are going out of business at a very fast rapid clip.
“A large percentage of them are struggling under this Dodd-Frank legislation that was passed in 2010. Now I think this legislation was well-intended, but to put all of the regulatory burden and these costs on the smaller institutions has ended up with a one size fits all regulation that makes it very difficult for them to give credit to entrepreneurs across our state.
“I think that many of the provisions have been injurious not only to the community bank--the credit unions and smaller ones--but to the small businesses, to the borrowers, to the savers that rely on these institutions. We do need to make an adjustment of this and the Financial CHOICE Act will provide much-needed relief to the community financial institutions in a responsible and proactive way. I think that the premise is straightforward which is a banking institution has to be strongly capitalized and well managed to get the off-ramp from Dodd-Frank.”