CUNA sends letter to the editor to Wall Street Journal in response to Op-ed
On April 5, JP Morgan Chase CEO Jamie Dimon wrote on Op-ed in the Wall Street Journal about how the financial industry relies on the interdependence of banks of all sizes. The Op-ed pointed out how large banks are good for smaller, regional banks. Dimon also writes that banks are operating in a heightened regulatory environment, “I believe I can say, on behalf of most of the nation’s largest banks, including the one that I lead, that we are very supportive of the efforts by small and regional banks to work responsibly with their regulators and, if necessary, the Congress to address new rules and requirements.”
In response to this Op-ed, CUNA President/CEO Jim Nussle sent a letter to the editor to the Wall Street Journal. Nussle made reference to the fact that big banks caused much of what Dimon wrote about.
“Regulations brought about by actions of banks like Mr. Dimon’s are absolutely affecting our ability to serve members and the communities in which we live and work, through no fault of our own. The regulatory cost impact on the credit-union industry was $6.1 billion in 2014, and the lost revenues to credit unions from services that were discontinued or reduced because of added regulation is at least an additional $1.1 billion. This total impact of $7.2 billion is equivalent to an astonishing 80 percent of industry earnings and 6 percent of our credit unions’ net worth.
It’s time for policy makers to act by recognizing the need for regulatory relief for credit unions and small banks.”
The Wall Street Journal also wrote an editorial entitled, “Dodd-Frank in Retreat.” It looks at how Dodd-Frank will be reformed and even the Democratic candidates for the presidency are saying they will reform the act.