Rounds touts bill relieving banking regulatory demands

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HURON – A bipartisan banking bill that rolls back one-size-fits-all regulatory burdens on community banks and credit unions will enable them to provide the services consumers want, Sen. Mike Rounds, R-S.D., said Thursday.
Seven provisions that he championed are included in the legislation, which passed the Senate Wednesday but faces a more uphill battle in the House because members of that chamber want to do more, he said.
“It will strengthen our financial system and allow smaller and midsized banks to focus on serving their communities, not complying with layers of bureaucratic demands,” Rounds said of the version of the bill that 67 senators supported.
Among the provisions he proposed are those that would streamline federal rules and expand the ability of federal savings associations or thrifts to offer loans to more families and businesses, free small banks from completing arduous and expensive tests, make it easier for banks with less than $3 billion in assets to raise capital, and give rural appraisal relief in cases when borrowers apply for loans less than $400,000 and have trouble finding a qualified appraiser.
Megan Olson, president and chief executive officer of the Independent Community Bankers of South Dakota and Curt Everson, president of the South Dakota Bankers Association, are applauding the legislation that they said will enable banks to meet the needs of their customers.
“They really play a vital role in helping businesses thrive,” Rounds said of banks and credit unions.
“This bill, I think, is a really good step,” he said.
In a conference call with reporters, he said the smaller banks weren’t part of the problem leading up to the Great Recession which started a decade ago and aren’t part of the problem now.

So called Dodd-Frank legislation was passed in 2010 in response to the recession.
“After eight years, we’ve learned what works and what doesn’t work,” Rounds said.
Meanwhile, he said he is greatly concerned about the potential for major flooding along the Missouri River due to a higher than normal snow pack in the mountain areas in Montana and North Dakota.
Catastrophic flooding in 2011 claimed five lives and caused $2 billion in damage and the recovery took years, he said.
Rounds said the Corps of Engineers has apparently not learned from previous mistakes and is not doing what is required to do to prevent another major flooding event.
Releases from the Gavins Point dam would relieve the potential for flooding, he said. Rounds said he has put the Corps on notice that he is paying attention to its daily activities.
While he said he does not want to be an alarmist, proper management of the river is needed.
Asked what he thinks about the “revolving door” situation over White House cabinet and staff being hired and fired on a regular basis, Rounds said President Trump’s management style differs from previous chief executives, but it’s important to look at all of the administration’s accomplishments in the past 15 months.
They include tax relief, the elimination of 2,000 federal regulations, a restructuring of the judiciary system with conservative judges and more funding for the military, Rounds said.
“Those types of things speak well of getting results,” he said.
While stability is not the president’s style, Rounds said, “I’m not going to second guess him on it” because he’s getting results.
The men and women who have served, but are no longer in the administration don’t automatically qualify for federal retirement benefits, he said.
The retirement plan offered to all federal employees consists of three components: a defined benefit plan, mandatory participation in Social Security and a defined contribution plan similar to a 401(k). Benefits offered through the plan are comparable to the retirement plans South Dakotans receive in the private sector, Rounds said.
“It’s not a silver lining to these folks for a big pension,” he said.