Banker Applauds Senator Warren’s Push For More Wall Street Regulations (VIDEO)

In the middle of grilling one of the largest banking executives on Wall Street, Senator Warren’s call for stricter regulations and punishment for violators was met with something unexpected from the room full of banking executives and lobbyists: Applause.

At a Senate Banking Committee hearing titled “Regulatory Relief for Community Banks and Credit Unions,” held on February 12, 2015, Senator Warren was in her normal anti-Wall Street mode. She kept the man she was engaging in a Q&A with, Daniel Blanton representing the American Bankers Association, on edge as she undermined his organizations arguments against Dodd-Frank.

When presented with the reality, that small banks were thriving under Dodd-Frank, contrary to the ABA’s assertions of them suffering, Mr. Blanton tried to wiggle his way out of it. The usual arguments against regulations fell flat as Warren presented fact after fact. And then, came the Pièce de résistance, when Senator Warren asked:

“If we really want to help the community banks … let’s start by holding big bank executives accountable for committing fraud like we do with small bank executives.”

At that moment erupted the applause, from John H. Buhrmaster,the Chairman of the Independent Community Bankers of America. To the dismay of the Wall Street banker under the microscope, the representative in the room for the very people he was attempting to use as a shield was celebrating the point of Senator Warren. And she is right, Wall Street should not be given a free pass, or special treatment. Community lenders have as much, if not more, economic power generation potential. Being embedded within the community, they know best what is and is not needed. And with modern national ATM networks they can connect through, you no longer need to have a local branch in order to have access to your money when not at home – the biggest claim for popularity by the national banks.

We all should be clapping for the demand to hold Wall Street to the same level of standards as our community banks. The effort to gut Dodd-Frank needs to be stopped before the Wall Street Casino gets rolling again.