Despite rhetoric, Dems and GOP want same things from reg reform
As the Republicans’ signature Dodd-Frank reform bill approached a final vote in the House Thursday afternoon, the two parties were both assailing each other as proxies for Wall Street and painting themselves as defenders of community banking and the consumer. The truth is a little more nuanced: In some ways both parties are right, and both are wrong. …Karen Shaw Petrou, managing partner at Federal Financial Analytics, said that the smaller the bank, the more likely it is to be able to easily comply with the 10% leverage ratio at the heart of the bill. That gives Republicans a legitimate claim to offering something to small banks that they want and that would have a positive effect on their bottom line. “Worshiping at the altar of community banks is a very popular and populist call to arms,” Petrou said. “Claiming that what you want is good for community banks has taken on the aura of saying what you want makes America great again. Who could argue with your objective?”