Professor Tanya Marsh testifies before Congress regarding ‘Regulatory Burdens: The Impact of Dodd-Frank on Community Banking’
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Office of Communications and Public Relations
July 17, 2013
WASHINGTON, D.C. — Professor Tanya Marsh testified in front of the U.S. House Committee on Oversight and Government Reform at 2:30 p.m. on Thursday, July 18, on Capitol Hill regarding “Regulatory Burdens: The Impact of Dodd-Frank on Community Banking.”
Marsh testified that any discussion of regulatory burden is incomplete without examining both the costs and the benefits of the specific regulation.
“It is my position that the regulatory framework for financial institutions in the United States, including many provisions of The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), impose significant costs on community banks without providing benefits to consumers or the economy that justify those costs,” she said.
“The stated purpose of the Dodd-Frank Act was to prevent another financial crisis by enhancing consumer protection and ending the era of ‘too big to fail.’ However, any application of Dodd-Frank to community banks is misplaced. Community banks did not cause the financial crisis.”
Marsh continued, “The relationship-banking business model and market forces protect the customers of community banks without the need for additional regulation. Dodd-Frank builds on decades of ‘one-size-fits-all’ regulation of financial institutions, an ill-conceived regulatory framework that puts community banks at a competitive disadvantage to their larger, more complex cousins. The imposition of regulatory burdens on community banks without attendant benefits ultimately harms both consumers and the economy by: (1) forcing community banks to consolidate or go out of business, furthering the concentration of assets in a small number of mega-financial institutions; and (2) encouraging standardization of financial products, leaving millions of vulnerable borrowers without meaningful access to credit.”
Marsh co-wrote a report with Joseph Norman (’12), an attorney in Charlotte, N.C., regarding the impact of Dodd-Frank on community banks earlier this year for the American Enterprise Institute. She also wrote a piece on the subject in The Huffington Post, which can be found here.
She plans to incorporate her work on community banks into her real estate transactions seminar this fall.
“Several of my former students — Brandon Heffinger, Rob Schaaf and Aimee Durant — came to watch my testimony and we discussed it after,” she said. ”In addition, my former student Katelin Kennedy is interning with the committee and stopped by. It was really nice to see so many friendly faces at the hearing.”
Marsh is an expert in real estate transactions and property. She joined the Wake Forest faculty in 2010, following a 10-year career practicing real estate and corporate law in Indianapolis, including nearly five years as the Vice President of Legal for Kite Realty Group Trust, a real estate investment trust traded on the NYSE.
Marsh’s written testimony and a webcast should be available following the hearing here.
To request an interview with Marsh, contact Lisa Snedeker at 336-758-5719.