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Article: Dodd's Power Of Persuasion; Facing long odds, the Banking Committee Chairman builds support for a plan to create a prudential regulator. But would a single agency kill the dual banking system?(The Inside Track: Policy, Players and Politics)
- Article from:
- US Banker
- Article date:
- November 1, 2009
- Author:
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Byline: Stacy Kaper and Cheyenne Hopkins
Senator Chris Dodd's concerted push to create a single banking regulator is driving a growing debate over whether consolidated supervision would threaten the dual banking system.
On one side are community bankers and Federal Deposit Insurance Corp. chairman Sheila Bair, who argue that a single regulator would focus all its attention on the largest institutions, leading to policies that would disadvantage smaller, state-chartered banks.
But proponents of a single regulator say those concerns are overblown and argue that protections can be built into the system to ensure community banks are not ...