November 11, 2009

The U.S. banking industry took aim at a regulatory overhaul proposal unveiled by Senate Banking Chairman Christopher Dodd (D., Conn.) on Tuesday.The proposal, "would tear apart the existing regulatory structure only to create a new one that would produce conflicts among regulators, undermine the state-chartered banking system, and impose extensive new regulatory burdens on those banks that had nothing to do with creating the financial crisis," American Bankers Association President Edward Yingling said in a press release.

The Independent Community Bankers of America called Dodd's proposal to collapse the federal banking regulation into a single agency "deeply flawed," saying it would place 8,000 community banks at a disadvantage.Meanwhile, the Securities Industry and Financial Markets Association, issued a statement expressing support for broad tenets of the Dodd plan - such as creating a systemic risk regulator - but was silent on the bill's details.