U.S. community banks have a problem with too-big-to-fail, and they took it to Capitol Hill last week. “The doctrine of too big—or to interconnected—to fail, has finally come home to roost, to the detriment of American taxpayers,” Michael Washburn, vice chairman of the Independent Community Bankers of America’s policy development committee said in testimony before the House Financial Services Committee.
Washburn, who doubles as president and CEO of Hoover, AL-based Red Mountain Bank, outlined the ICBA’s platform for more rigorous regulation and a de-concentration of the banking sector. The organization supports multiple federal banking regulators. “Having more than a single federal agency regulating depository institutions provides valuable checks-and-balances,” Washburn said.