Today marks the 5th anniversary of the Dodd-Frank Act. On this occasion, I’d like to take a moment to discuss the impact that this bill has had on Maine’s families, businesses, and local communities.
For more than 200 years, our robust financial sector has been the bloodline of our nation’s economy, which has pulled so many out of poverty.
As a member of the House Financial Services Committee, my priority is ensuring that Mainers can save for retirement, our small businesses can access credit to grow, and our families can achieve the dream of home ownership.
While I strongly believe that we must have rules and regulations in our financial markets, I’m concerned that over regulations will only serve to hurt families by limiting choice, raising fees, reducing returns and choking off access to credit.
Instead of protecting jobs and businesses, the Dodd-Frank Act struck at the core of American creditors, the pulse of our nation’s small businesses. This legislation put in place complex regulations, garnered higher costs for producers, and instituted needless fees, all of which have had a negative impact on communities and local businesses in Maine and beyond.
Businesses, community banks, and credit unions in our Second District, such as the Machias Savings Bank, are still experiencing the negative impacts of this costly, jobs-killing bill. Because of increased regulations, Machias Savings is hiring compliance officers to deal with these regulations instead of hiring loan officers who can help Mainers secure much needed loans.
Our community banks and credit unions are the backbone of our economy. They want to be able to lend money to Mainers who are interested in purchasing a new truck or putting a new engine on a lobster boat but they are unable to because of Dodd-Frank’s net of regulations.
I am concerned about this Dodd-Frank net as it is smothering our banks and credit unions, jobs being lost and credit not being extended.
In May, at a Financial Services Committee hearing, I was able to question witnesses on the Dodd-Frank Act. I asked them if there should be reforms to Dodd-Frank in order to help our community banks and credit unions who are suffering from regulations. Click here to see their responses.
In Congress, I will continue to ask the hard questions on reforming Dodd-Frank and express Mainers’ opinions.