.
>> FOR MANY AMERICANS, THESE
SMALL BANKS ARE THE ONLY
FINANCIAL INSTITUTIONS IN THEIR
ENTIRE COMMUNITY.
BY LIBERATING SMALL BANKS FROM
EXCESSIVE BUREAUCRACY, AND
THAT'S WHAT IT WAS,
BUREAUCRACY.
WE ARE UNLEASHING THE ECONOMIC
POTENTIAL OF OUR PEOPLE.
LIZ: AND AS HE PUT PEN TO
PAPER, SMALL AND COMMUNITY
BANKS CELEBRATED.
A HUGE REGULATORY WEIGHT HAS
JUST BEEN LIFTED OFF THE
SMALLER REGIONAL BANKS.
THE FINANCIAL CRISIS ERA
REGULATION KNOWN AS DODD-FRANK
HAS JUST BEEN TRIMMED,
LIBERATING THE REGIONAL BANKS
AND SIMPLIFYING CAPITAL
REQUIREMENTS FOR BANKS THAT
HAVE LESS THAN $250 BILLION IN
ASSETS.
AND AS WE LOOK AND SEE THE ETF
THAT REPRESENTS A LOT OF
REGIONAL BANKS.
THIS IS THE SPYDER REGIONAL
BANK ETF, IT IS UP 9% YEAR TO
DATE.
21% YEAR-OVER-YEAR.
THEY WERE ANTICIPATING THIS
ONE.
BRING IN TWO REGIONAL BANK
LEADERS, REBECCA MARIO RAINY
WHICH REPRESENTS 5700 COMMUNITY
BANKS AND SCOTT SHEA,
COCHAIRMAN AND FOUNDER OF
SIGNATURE BANK.
33 DEMOCRATS ALONG WITH A BUNCH
OF REPUBLICANS VOTED FOR IT.
YOU GOT TO BE THRILLED.
WHAT DOES THIS MEAN TO ALL
REGIONAL BANKS?
>> I AM THRILLED.
THIS IS GREAT DAY FOR AMERICAN
WORKERS WHO ARE FINANCED
THROUGH MIDSIZED BANKS, AND I
THINK IT'S A GREAT -- I THINK
IT LIBERATES BANKS TO CONTINUE
TO GROW AND COMPETE WITH A
LARGER BANKS.
FOR EXAMPLE, WE'RE AT $44
BILLION BANK, AS WE APPROACH
$50 BILLION, WE WOULD BE SEEING
TENS OF MILLIONS OF DOLLARS
MORE REGULATORY COSTS.
AND NOW WE CAN CONTINUE TO GROW
RIGHT THROUGH THAT LEVEL AS CAN
SO MANY OF OUR BRETHREN BANKS
AND THAT'S GOOD FOR CONSUMERS
BECAUSE WE'RE GOING TO BE
FINANCING COMPANIES AND IT'S
GOOD FOR THE ECONOMY.
I THINK THIS IS A TREMENDOUSLY
GOOD DAY.
LIZ: REBECCA, THEY SAY THE ROAD
TO HELL IS PAVED WITH GOOD
INTENTIONS, I THINK DODD-FRANK
HAD GOOD INTENTIONS TO PREVENT
A FURTHER FINANCIAL CRISIS.
IN BEING SO ONEROUS IN THE
BIGGER BANKS WHICH TOOK IN MANY
CASES CRAZY BETS, THEY SWEPT IN
THE SMALLER REGIONALS WHO WERE
ACTUALLY QUITE FOCUSED ON MAKE
SURE THEY WERE LENDING PROPERLY
TO THEIR NEIGHBORHOOD
COMMUNITY.
SO WHAT DOES THIS MEAN FOR
SMALL BUSINESS OWNERS WHO ARE
WATCHING RIGHT NOW, OR ANYBODY
WHO WANTS A LOAN IN THEIR LOCAL
NEIGHBORHOOD?
>> IT MEANS THAT COMMUNITY
BANKS ACROSS THIS NATION ARE
GOING TO BE ABLE TO RESPOND TO
THOSE NEEDS OF THE SMALL
BUSINESSES MAKING HOME LOANS,
MAKING CONSUMER LOANS TO REALLY
UNLEASH THEIR FULL POTENTIAL
AND HARNESS THE POWER OF LOCAL
COMMUNITIES.
LIZ: DODD-FRANK WAS SIGNED
JULY, I BELIEVE, OF 2010,
CORRECT?
I LOOKED BECAUSE I WANTED TO
SEE HOW MANY REGIONAL BANKS
FAILED FROM JULY AFTER IT WAS
SIGNED TO JUST DECEMBER OF
2010.
TURNED OUT MORE THAN 50 HAD
GONE UNDER.
50 REGIONAL BANKS.
SCOTT, YOU REMEMBER THOSE DAYS.
EVEN A YEAR BEFORE THE FAMOUS
ONE WAS JULY 9th, SEVEN
REGIONAL BANKS ON A FRIDAY
COLLAPSED, WENT UNDER.
PEOPLE ARE WORRIED AND TRISH
HAD A GUEST ON WHO SAID THIS IS
TERRIBLE.
WE'RE WORRIED THIS IS GOOD FOR
THE BIG BANKS AND NOT THE SMALL
BANKS.
WHAT DO YOU SAY TO THAT?
>> I'M REALLY PUZZLED WHEN
PEOPLE SAY.
THAT FRANKLY BY ALLOWING US TO
FOR THE AMERICAN CONSUMER.
45% OF ALL CHECKING ACCOUNTS IN
THE UNITED STATES WERE OPENED
BY THREE BANKS IN THE LAST --
IN THE LAST FEW YEARS.
IF YOU'RE TALKING ABOUT THE
BANKS THAT FAILED, THOSE 50
BANKS.
I THINK WHEN YOU ARE REFERRING
FOR BETTER, FOR WORSE, SMALLER
BANKS WHOSE OTHER UNDERLYING
PROBLEMS MAY HAVE BEEN
EXASPERATED BY THE FINANCIAL
CRISIS, WHICH WAS FRANKLY A
COMPLEX MATTER DONE BY BANKS
TRADING IN COMPLEX SECURITIES.
IN OUR CASE, WE'RE BASICALLY A
COMMUNITY BANK THAT GOT BIGGER
BECAUSE WE'RE IN THE NEW YORK
AREA, AND WE NEVER HAD A DOWN
YEAR DURING THE FINANCIAL
CRISIS.
WE MADE MORE MONEY IN 09 THAN
08 AND DIDN'T HAVE A DOWN YEAR.
LIZ: LOOKING AT THE 10-YEAR
TAKING US BACK TO 2008 DURING
THE FINANCIAL CRISIS OF THIS
REGIONAL BANK ETF.
SURE LOOKS LIKE A BUY AT THE
WORST POINT.
WE CONTINUED TO CLIMB.
BUT REBECA, GIVE US A SENSE OF
THE CLIMATE FOR THE CONSUMER.
PART OF THE PLAN IS FREEZING OF
CREDIT IF CREDIT HAD BEEN
HACKED.
WE REMEMBER THE EQUIFAX HACK
WHICH WAS DISASTROUS FOR THE
CONSUMER.
BECAUSE THEIR CREDIT RATING WAS
TAMPERED AND TAINTED.
WHAT WILL THIS MEAN TO PEOPLE
WHO NEED A MORTGAGE, WHO NEED A
BUSINESS LOAN AND WE KNOW WHAT
BANKS DO, THEY CHECK YOUR
CREDIT.
>> RIGHT, IT GIVES CONSUMERS
THE ABILITY TO FREEZE THEIR
CREDIT IF THEY SO DESIRE, BUT
REALLY FOR CONSUMERS TO BE ABLE
TO WORK WITH THEIR LOCAL
COMMUNITY BANKS, WHETHER IT'S
THROUGH A MORTGAGE LOAN,
CONSUMER CREDIT THEY'RE LOOKING
FOR, IT PROVIDES AN
INFRASTRUCTURE AND FREES UP THE
CAPITAL OF THESE COMMUNITY
INSTITUTIONS TO GET BACK TO
LENDING AND TAKE CARE OF
COMMUNITIES.
LIZ: WELL, I'M SURE IT'S A
WONDERFUL DAY.
SCOTT, IF YOU HAD THE 33
DEMOCRATS' EARS AT THE MOMENT.
I SAY THAT BECAUSE THEY JOINED
WITH THE REPUBLICANS.
THIS TRULY WAS BIPARTISAN.
THE PRESIDENT LOOKED VERY HAPPY
TO BE ABLE TO SAY THAT.
WHAT WOULD YOU SAY TO THEM?
>> FIRST OF ALL, I WOULD SAY
THANK YOU.
THIS WAS REALLY DRIVEN BY THE
MODERATE DEMOCRATS IN THE
SENATE.
I MEAN I REALLY HAVE TO SAY
THANK YOU TO SENATOR DONNELLY,
SENATOR TESTA AND SENATOR
WARNER WHO TOOK SUBSTANTIAL
LEADERSHIP IN CREATING A BILL
THAT EVERYBODY COULD GET
BEHIND.
AND THERE WERE A NUMBER OF
REALLY MAINSTREAM MODERATE
DEMOCRATS WHO RECOGNIZED THIS
WAS A BILL THAT WAS GOOD FOR
THEIR COMMUNITIES.
SO I THANK THEM.
LIZ: REBECA, SCOTT, ONWARD,