US community banks request big merger re-think

21 September 2011

Community banks across the US have called for greater regulation regarding big mergers between larger financial firms.

The Independent Community Bankers of America (ICBA) has requested regulators consider a moratorium on these type of deals involving companies with more than $100 billion in assets.

Presented to the Federal Reserve at the first of a number of public hearings being held in review of the proposed takeover of ING Groep NV's US online banking portfolio by Capital One Financial Corp, ICBA's pitch suggested a re-think on sizeable mergers before the guidelines from last year's Dodd-Frank law are fully drawn up.

Chris Cole, senior vice-president of ICBA - which has almost 5,000 members and represents over 23,000 locations throughout the US - said: "It has been 14 months since the Dodd-Frank Act was passed and we still don't have a regulatory apparatus in place to deal with those banks over $50 billion."

By Tony Aynsley

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