Over-regulation Continues to Hurt the Banking Industry Source: www.fb.org ATLANTA, January 11, 2011 – New regulations mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Credit Card Act of 2009 and the Job Creation Act of 2010 are currently having the greatest effect on the banking industry, according to Larry Lanie, president and CEO of Farm Bureau BanCorp, speaking at an issues conference at the American Farm Bureau Federation’s 92nd annual meeting. “When the government first started to create new regulations it was to fix the ‘too big to fail’ problem,” Lanie said. “Now they have over-regulated the banking industry and created new problems, which increases costs.” According to the FDIC, in 2007 there were three bank failures and 157 in 2010. The Dodd-Frank Wall Street Reform and Consumer Protection Act and the Credit Card Act of 2009 were originally created as a means to increase consumer protections, end bailouts, and increase transparency and accountability. But according to Lanie, the new legislation has had negative impacts on the banking industry, which ultimately affects the returns for depositors. Some new legislation should help community banks and the agricultural industry, according to Lanie. Through the Job Creation Act, the U.S. Treasury will loan up to $30 billion to banks over the next four years. Only community banks are eligible for the funds, which must be used for loans to small business owners. “The good news for many farmers and ranchers is that they will qualify for these small business loans,” said Lanie.