Last week, we provided clients with an analysis of the latest effort by the federal banking agencies to show bankers that the agencies really, really care about their burden (see FSM Report REFORM110). Bankers will continue to doubt this even as they file comment letters, using the latest proposal to wax prolific about problems in both the capital and Community Reinvestment Act requirements. Regulators will hold public hearings and try to show how much of the banks’ pain they feel, but Congress will nonetheless try to take over and make sure community-bank burden is lightened, not just talked about. On the Hill, community banks have a double-edged agenda: save themselves and skewer big banks. Here, we look at key issues Congress will tackle now that the first session of the 114th begins in earnest.
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