Newt Gingrich says Dodd-Frank is destroying community banks - Politifact Rating: FALSE
source: http://www.politifact.com/truth-o-meter/statements/2011/nov/21/newt-gingrich/newt-gingrich-s...
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No politician will ever lose votes by coming down on the side of community banks. Unlike the mega-banks of Wall Street that helped fuel the world’s dive off an economic cliff, community banks have a better reputation. They avoid exotic financial deals and, for the most part, stick to their knitting.
GOP hopeful Newt Gingrich offered himself as their defender when he spoke to supporters at campaign headquarters in Manchester, N.H. "Community banks are 12 percent of the banks right now and 40 percent of the loans to small business," Gingrich said. "And they are being destroyed by Dodd-Frank."
Dodd-Frank is the financial overhaul bill passed by Congress in 2010. Gingrich says it should be repealed, in part because of its impact on these local banks.
We asked the Gingrich campaign to give us the data that informed the former House speaker’s belief. Staffer R.C. Hammond replied "It was his observation. How do you source an opinion?"
But Gingrich didn't say, "I think community banks are being destroyed by Dodd-Frank. He asserted it as a fact.
The first thing to note is that one year after the passage of Dodd-Frank, community banks are healthier. By convention, any bank with assets of less than $1 billion is a community bank. According to the latest report from the Federal Deposit Insurance Corporation, for that group of banks, a key measure of profitability, return on assets, has doubled in the past year, growing from 0.26 percent a year ago to 0.57 percent in the second quarter of 2011. Return on assets has been higher this year than in any quarter going back to the start of 2008 before the great meltdown.
more at link...
GOP hopeful Newt Gingrich offered himself as their defender when he spoke to supporters at campaign headquarters in Manchester, N.H. "Community banks are 12 percent of the banks right now and 40 percent of the loans to small business," Gingrich said. "And they are being destroyed by Dodd-Frank."
Dodd-Frank is the financial overhaul bill passed by Congress in 2010. Gingrich says it should be repealed, in part because of its impact on these local banks.
We asked the Gingrich campaign to give us the data that informed the former House speaker’s belief. Staffer R.C. Hammond replied "It was his observation. How do you source an opinion?"
But Gingrich didn't say, "I think community banks are being destroyed by Dodd-Frank. He asserted it as a fact.
The first thing to note is that one year after the passage of Dodd-Frank, community banks are healthier. By convention, any bank with assets of less than $1 billion is a community bank. According to the latest report from the Federal Deposit Insurance Corporation, for that group of banks, a key measure of profitability, return on assets, has doubled in the past year, growing from 0.26 percent a year ago to 0.57 percent in the second quarter of 2011. Return on assets has been higher this year than in any quarter going back to the start of 2008 before the great meltdown.
more at link...
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