Small Businesses – Over Regulated? Thousands of Community Banks a.k.a Small Businesses May Disappear!
…to name a few. This equates to many thousands of dollars in added security measures and personnel costs.
We now face another huge challenge, none more onerous than the PPACA (a.k.a. Obamacare) as it ramps up.
Many community banks and credit unions are small businesses too and are subject to the same laws and regulations facing big banks. The Feds have closed down 10 of our FI customers, costing them their jobs and costing us hundreds of thousands of dollars in lost revenues. Speaking to many of our contacts at these FIs, most closing could have been avoided.
According to several of these sources, the Feds come in at the end of business day, Friday and take over the bank. One source, described it similar to be treated as a criminal as she was forced to stand outside her cubicle while they accessed her PC. She was kept there until after midnight.
Recently, an expert on financial services stated “there will be no de novo (startups) financial institutions due to the steep financial requirement and regulations.”
A quote recent article from CNN Money’s Fortune Magazine, Thousands of banks may disappear, “Now that President Obama has been re-elected, analysts, consultants and deal makers have turned from whether Dodd-Frank will be repealed to what it means for banks now that it’s likely here to stay. The overwhelming conclusion: Thousands of small banks will soon disappear.”
As the number of community banks and credit unions shrink we are forced to seek new markets. An added burden to already burdensome economic conditions. While the Obama administration panders to big business, big union and advocates big government, small businesses continue to bear the brunt of over regulation.
This is the official government “fair warning” website regulations.gov. Be afraid! Be very afraid!