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US Chamber of Commerce Supports New Bill to Help Main Street Business

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The United States Chamber of Commerce sent a "key" letter to the Senate in support of Article S.2155, Economic Growth, Lightening the Regulation Act and consumer protection. The purpose of the bill is to provide regulatory relief to community banks following the widespread application of financial regulation as a result of the 2008 financial crisis.

The American Chamber of Commerce supports Dodd-Frank's relief for small banks

The letter highlights the difficulties encountered by the main street businesses as a result of regulations such as the Dodd-Frank Wall Street and the 2010 Consumer Protection Act.

"Main Street businesses depend on community and regional banks for the financing needed to start, sustain operations, manage cash, pay and create high-paying jobs. The "universal" approach to regulation put in place following the 2008 financial crisis has severely limited the ability of these banks to serve consumers and small businesses in their communities, "the letter explains.

On Tuesday, a bipartisan effort resulted in 17 Senate Democrats joining the Republicans to advance the bill. A vote of 67-32 ended the debate on a motion to proceed, more than the majority of 60 votes needed. The bill should be approved by the Senate by next week at the latest.

In the letter, Jack Howard, First Vice-President of Congressional Affairs and House Affairs, writes, "This bipartisan legislation is a step toward fairer regulation of community and regional banks. -long decline in small business loans. "

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What will S.2155 do?

S.2155 would amend several provisions of the Dodd-Frank Act, as well as other rules relating to regulation in the financial sector. It specifically amends the regulatory framework for small deposit-taking institutions. They are lenders whose assets are less than $ 10 billion (also classified as community banks).

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Amendments to the mortgage credit and credit reporting regulations will also be implemented in conjunction with the regulators of the financial sector regulators.

The bill will stop grouping community banks into the same regulatory frameworks designed for Wall Street institutions. According to the Independent Community Bankers of America (ICBA), this is "fueling the consolidation of the banking industry and leaving local communities with fewer financial services options."

Proponents of the bill see more money available for businesses, including banks, credit unions and free market groups. Opponents, meanwhile, see the dilution of the Dodd-Frank Act as the precursor of another financial crisis

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Photo via Shutterstock.

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