U.S. Congressman Marlin Stutzman issued the following statement last week regarding his support for the Fairness for Community Job Creators Act, legislation introduced by Financial Services Committee Chairman Jeb Hensarling (R-TX) and Financial Institutions and Consumer Credit Subcommittee Chairman Shelley Moore Capito (R-WV) to correct a Volcker Rule provision that harms community banks and lending institutions.
“This legislation brings relief to the Hoosier lending institutions that face nearly $60 million in losses thanks to the Volcker Rule’s arbitrary regulations,” Stutzman said. “The Volcker Rule’s unfair treatment of community banks does nothing to create new jobs, help families and small businesses access credit, put Hoosiers back to work, or prevent another financial crisis. Last month, my colleagues and I urged regulators to address this issue and prevent these needless losses. While I am extremely disappointed that Washington’s bureaucracy did not reverse its course, this legislation makes it clear that this fight is far from over.”
On Dec. 10, 2013, the final Volcker Rule was approved by Washington regulators. Although most community financial institutions do not engage in activities covered by the Volcker Rule, the rule’s treatment of Trust Preferred Securities could result in nearly $60 million in losses by Hoosier institutions.
On Dec. 19, 2013 Congressman Stutzman led a group of Hoosier representatives in sending a letter to regulators urging them to prevent these losses.
The Fairness for Community Job Creators Act would clarify that the Volcker Rule will not force institutions to divest ownership of trust preferred securities that were issued prior to the rule’s final implementation.