Fed retains power to oversee small banks

The ICBA said the amendment allows the regional Federal Reserve banks "to keep their finger on the pulse of Main Street communities that our nation's nearly 8,000 community banks serve each day," said Jim MacPhee, chairman of the ICBA in a release today. 

"These communities all have diverse regional economies, and the insights provided by the current system are crucial to the Federal Reserve exercising its monetary functions and its ability to gauge the impact of banking regulations across various institutions," he said. 

The amendment also eliminates provisions that "would result in payments from the FDIC's Deposit Insurance Fund to subsidize the exam costs of national megabanks," he saiid.