By Benjamin Goad - 05/01/13 05:17 PM EDT
The Dodd-Frank financial reform law alone requires regulators to develop hundreds of new rules for financial institutions, and community banks have complained loudly that the regulations do not distinguish between them and the Wall Street giants.
They appear to have a receptive audience in Niederauer, who described the community banks as integral to the economic recovery of small towns across the country.
“How do we recalibrate the rules and regs for community banks?” he questioned during a meeting of the advisory panel. “I think Main Street is really struggling.”
The Independent Community Bankers of America issued a regulatory platform earlier this year, calling for a tiered regulatory system that would exempt its members from some provisions meant to target bigger banks.
The group argued that community banks played no part in the reckless activities that lead to the crisis and should not be punished with regulations that present a disproportionate burden on them.
Smaller institutions, the group argues, have fewer resources in place to adapt to new regulations and are unduly smothered by the added red tape.