Oklahoma Bankers Association
OBA News and Information
Linked In Email News

What kind of financial reform does the OBA support?

What does the Oklahoma Bankers Association support in terms of "financial reform?"

At a meeting of the Board of Directors of the Oklahoma Bankers Association on Tuesday, March 23, 2010, the Board adopted the following policy position with respect to the OBA's position on “financial reform.” The OBA supports legislation that will accomplish the following objectives:
 

  • End “too-big-to-fail” as a matter of national policy;
  • Establish an orderly resolution of such entities, without penalizing smaller banks that are “too-small-to-save”
  • Effectively manage “systemic risk” of all financial services firms, including an ability to influence FASB decisions that impact pro-cyclical accounting matters;
  • Provide a system of enhanced consumer protection for non-banks and other providers of financial and related services currently not covered by consumer laws applicable to member banks. We support a proper balance between “consumer protection” and “safety and soundness,” but safety and soundness concerns are the most important consideration;
  • Maintain the independence of the Federal Reserve and particularly its authority to oversee state member banks as a critical part of its role in establishing monetary policy. Eliminating this role creates an inherent bias toward large financial entities at the expense of traditional community banks;
  • Create a post-funded “resolution fund” for “too-big-to-fail” entities, paid for by those entities alone. A pre-funded resolution fund becomes a de facto “too-big-to-fail” insurance fund that, together with exclusive Federal Reserve oversight and supervision, institutionalizes “too-big-to-fail” as an on-going national policy;
  • Federal pre-emption should be maintained rather than default to a patchwork of state and local laws;
  • Modernize regulation of the derivatives markets to provide more transparency in such matters.

Back to top