Congressman Don Manzullo (R-IL) today urged federal bank regulators to remove roadblocks that are preventing Illinois banks from making loans to credit-worthy business owners and home buyers and delaying America’s economic recovery.
Manzullo, a senior member of the House Financial Services Committee, joined his colleagues this morning at a Congressional field hearing in Chicago entitled, “Regulatory Reform: Examining How New Regulations are Impacting Financial Institutions, Small Businesses and Consumers in Illinois.” After making his opening statement, Manzullo heard from several representatives of Illinois’ banking, small business, and housing industries who spoke of difficulties securing the credit they need to expand and put Americans back to work.
During the hearing, Manzullo told of a constituent owner of a precision machining company in northern Illinois who had been denied credit from eight different banks even though he had orders in hand to cover the loan. In each instance, the loan request was denied because the bank feared the response by federal regulators during examinations, not because the company was a risky investment.
“It is troubling that federal bureaucrats continue to hamstring our recovery. Credit in this country is being held hostage by overzealous bank examiners, and banks are too overwhelmed by the examination process to authorize loans to credit-worthy borrowers,” Manzullo said.
“Our economic recovery is dependent on credit-worthy Americans getting the capital they need to expand their businesses and buy homes again. Unfortunately, that will not happen until the bank regulators start easing the grip their examiners have on the banking industry,” says Manzullo.
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