July 2010 | Citywide E-News
The Uncertain Impact of Landmark Financial Legislation
The Dodd-Frank banking reform bill was signed into law by President Obama this week and with it will come an avalanche of new rules and requirements for the financial services industry. In fact, the legislation includes 533 new regulations. To put that in perspective for you -- let’s compare it to the last major corporate governance reform bill – Sarbanes Oxley – which created only 16 new regulations.
While the legislation was inspired by the economic meltdown which embroiled many large financial institutions in late 2008 – the Act will also affect community banks like Citywide that did not contribute to the problem. We will be investing significant resources to ensure compliance in the months ahead.
What does this sweeping legislation mean for your business? Well, there is still much debate about the general economic impact of the bill. Of course, its sponsors hope it will protect us from future economic collapse. Those of us on the receiving end are not so sure it will help prevent another crisis. Some are concerned it could reduce the availability of credit for small businesses. Others are more concerned about the cost of the government oversight which could increase taxes for businesses and consumers alike.
It remains to be seen how beneficial this expansive reform will be when the dust settles. But, there is one thing you can be sure of -- Citywide Banks will continue to work hard to ensure compliance and control costs where we can in order to continue providing the services you need to keep your business on track.
Kevin G. Quinn, President & CEO, Citywide Banks
303-365-3706 |
