Mr. President, I thank Chairman Crapo. I want to associate myself with my good friend from Tennessee, Senator Bob Corker. We always say ``good friend,'' but the truth is that Senator Corker has truly been a good friend. We came to this…
Mr. President, I thank Chairman Crapo. I want to associate myself with my good friend from Tennessee, Senator Bob Corker. We always say ``good friend,'' but the truth is that Senator Corker has truly been a good friend. We came to this body together, and he has exhibited uncommon common sense in this body time and again, and once again, he has today. I thank Senator Corker for his remarks about this bill.
Mr. President, time and again over the past year, I have been here on the Senate floor raising my concerns about the direction this body is heading--secret backroom deals on the healthcare bill, a ``take it or leave it'' tax bill that was dropped on our desks literally hours before the vote, and the floor time that has been wasted to score political points. Quite frankly, this dysfunction has turned the world's most deliberative body into a shell of its former self.
Folks in Washington have shied away from the big debates and refused to tackle the tough issues that are facing hard-working Americans every day, but this week I am hopeful that can change.
Today we begin the debate on the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act. This bill is the product of years of bipartisan negotiations, hearings, and compromises. Under the leadership of Chairman Crapo and my good friends Senators Heitkamp, Donnelly, and Warner, we have struck a bipartisan agreement that is needed to provide an economic boost for rural America. Folks from both parties put their differences aside. We negotiated from our points of agreement, and we emphasized common ground. We kept working toward our shared goal of strengthening America's economy by providing commonsense regulatory reform to small- and medium-sized banks, community banks, and credit unions.
During the committee process, this bill was marked up and debated for 7 hours. We voted on 36 amendments during an open amendment process. The chairman handled that committee process incredibly professionally.
Since this bill was introduced in the Banking Committee last year, it has been strengthened by Senators who are not on that committee, and it has been endorsed by regulators, veterans groups, and job creators from both parties. This bipartisan bill has support from folks of all walks of life and is cosponsored by more than a quarter of this body because they know that reform is desperately needed.
In my home State of Montana, prior to the financial crisis in 2008, there were 72 chartered banks. Today that number has dropped to 49. What we have seen in Montana is not unique throughout this country. Across rural America, bank consolidation is leaving communities underserved. Community banks and credit unions didn't cause the financial crisis back in 2008, but they have suffered under a one-size- fits-all set of regulations specifically designed to rein in the behavior on Wall Street. As a result of complying with these regulations, many of our community bankers are hanging up their hats, and our local banks are being swallowed up by bigger banks. Ultimately, they will be swallowed up by the folks on Wall Street.
Furthermore, when a community bank is bought out by a big bank, its business model changes and it is no longer tailored to fit that community. Despite being a small portion of the banking industry, community banks provide--listen to this--48 percent of the small business loans in this country, 15 percent of the residential mortgage lending, 43 percent of farmland and farm lending, and 34 percent of commercial real estate loans. These banks are designed and built to serve their communities.
Since the passage of Dodd-Frank, the number of banks in this country has declined by 14 percent, and in our State of Montana, with some quick math, it is closer to 30 percent. If you are a product of rural America like I am, you know full well the consequences when a bank leaves town. It is just a matter of time before that community shrivels up. Folks, something must be done.
Eight years ago, during the dark days of the financial crisis, I proudly supported Dodd-Frank. Dodd-Frank was needed to crack down on risky financial behavior. For the most part, Dodd-Frank has been successful, but, like all major bills, Dodd-Frank had some unintended consequences. Since its passage, small business lending has declined by 41 percent. That is why our bill is needed--to bring more capital to Main Streets across America and to protect community banks from further consolidation.
Our bill provides small and midsized banks and credit unions with more flexibility to meet the unique needs of the communities they serve. It also provides our community banks with much needed regulatory relief and cuts the redtape to keep our local banks competitive. It includes critical consumer protection provisions to better protect our veterans, our seniors, and tenants. This bipartisan bill makes it easier for young families to purchase their first home. It helps family farmers and ranchers secure the capital they need to survive a tough year when Mother Nature doesn't cooperate. It helps small businesses and startups secure the funding they need to grow their businesses and create more jobs. It protects the small banks that serve as a cornerstone of rural communities from being eaten alive by the big boys on Wall Street.
In addition to banking reform, this bill strengthens the rights of consumers. It provides consumers with unlimited free credit freezes and unfreezes. It prevents mortgage companies from immediately kicking tenants out of their homes if a landlord is foreclosed on. It increases safeguards against fraud for veterans, Active-Duty servicemembers, seniors, and children.
Over the course of this debate, there are going to be some folks who come to this floor and peddle misinformation, so let me be clear about what this bill does not do. It does not roll back the regulations on Wall Street's fat cats. It does not make structural changes to the Consumer Financial Protection Bureau. It does not weaken or repeal the Volcker rule for large banks. It does not change the way the Federal Reserve regulates foreign banks. It does not weaken efforts to combat lending discrimination.
I have already seen a lot of falsehoods about this bill claimed out there, so I hope this debate stays grounded in the facts, and the fact is that folks in rural America need this bill.
Take for instance the Community Bank in Polson, MT. Polson's population is 5,000, and that might be generous. The Community Bank had faithfully served this community for decades, but the regulations from Dodd-Frank were so burdensome on that small bank and so costly that it was forced to sell out to a larger bank.
But it is not just Polson. Here is what other folks in my State are saying about the bill. A small credit union in Billings, MT, said:
As a small credit union, we spend a ridiculous amount of
time complying with complex rules and I am pleased to see a
bill that would eliminate some of this red tape so I can
focus my resources on serving members.
That was from Sydney El-Bakken, manager of Homestead Federal Credit Union in Billings, MT.
This is a quote from another bank in Jordan, MT:
Dodd-Frank has disproportionately affected small banks like
mine who have limited staff and resources to comply with the
regulations created by the bill. Prior to Dodd-Frank's
passage, my bank was able to keep up with compliance
regulations with one staff member. Now, in addition to our
one staff person, we also have outside compliance consultants
that cost us over $23,000 last year alone.
I am going to get back to that figure in a second.
I have talked to many of my fellow bankers who decided to
sell to, or merge with, another bank. Almost every one of
them has told me that the regulatory burden was one of the
main reasons for them to sell or merge.
The loss of small community banks is not good for our
country, our consumers, or our economy. This bill provides
many remedies to lessen the regulatory burden on small banks,
which allow us to remain competitive, viable, and able to
serve the needs of our communities.
The reason I bring up the $23,000 is that there are some out there who may be listening and may say that $23,000 is not even a rounding error in a lot of businesses. Rex Phipps is the CEO of Garfield County Bank in Jordan, MT. Their total assets are $86 million. This is a small bank that is getting pounded and that this bill is going to help in a big, big way.
I am going to tell you, I could go on reading the words of community bankers and credit union leaders and businesses in Montana that support this bill, but the bottom line is this: Folks sent us to the Senate to do something to help out the folks we represent. For too long, this body has been dragged into the mud, and as a result, we have had partisan and zero-sum policies and zero-sum politics. Dysfunction has kept this Congress from doing its job, and part of that job is to fine- tune laws to ensure that regulation fits the risk.
Enough is enough already. We must do something. And I am proud to work with 13 Republicans, 12 Democrats, and 1 Independent who worked so hard to compromise on this bill that I think works very well for rural America. The Economic Growth, Regulatory Relief, and Consumer Protection Act is a jobs bill, and it is a much needed solution for the folks who power our local economies. I look forward to this week's debate.
It is encouraging to see that the Senate is back here doing the job we were sent here to do. It is encouraging that we have a bill here that has gone through the process to gather public input, gather bipartisan support, and it is now on the floor so that we can debate it. I look forward to that debate, and I hope that debate is based on the facts.
I want to say one more thing before I yield the floor. We would not be here today without Chairman Crapo. Chairman Crapo has done a fine job getting everybody's opinion, respecting everybody's opinion, and walking that line to allow for negotiations and having a good bill as the final product. I don't know what is going to be in the final managers' package, but I hope it doesn't change this bill dramatically because I think this bill really fits the needs of our economy, especially in rural America right now.
With that, I would just say, look, we have some work to do. Hopefully we can do it in a timely fashion and get this bill off to the House. Hopefully the House doesn't screw it up and we can get it to the President's desk for his signature.
I yield the floor.