Tercha on Dodd Frank and its Effect on her Community

"With the elections fast approaching, WE president, Sharon Tercha found an opportunity to explain some of the far-reaching and negative effects of Dodd-Frank to her community and in very simple terms, why they should care. This op-ed piece was tied to an ongoing published conversation regarding a real estate firm (A New Dawn) that had its mortgage called. WE believes that everyone in the banking community should look for ways to inform on a local level. It may be the only way to send a message to our legislators and correct the current banking climate."
On Finding The Boots
Like many of your readers, I've followed the New Dawn Realty debate in the Grins and Gripes section of this newspaper and am sorry to see another small business harshly impacted by the economy. It would be easy to take sides on this topic – no one wants a Main Street business to lose its home. But there's a deeper issue here that should be top of mind as we gear up for the next election: The far-reaching effects of even "well-intended" legislation.

I was thinking of an old-timer I deemed the Imelda Marcos of the boot world. As his signature indulgence, he ponied up plenty for each addition to his collection. One day at work he dripped inky oil, staining his prize pair of boots. So he expensed them.

Not surprisingly, his supervisor skimmed the lines, cocked his brow and rejected the report with a simple, "I can't approve this." The old guy took the report back and returned with a new version of the expense report with the same total, saying, "Here – find the boots."

What's happened in the banking world isn't very different. You've undoubtedly heard about Dodd-Frank, legislation proposed largely in response to the predatory lending practices of, most notably, big banks.
At first glance, Dodd-Frank looks great. The legislation prevents institutions from auto-enrolling customers in overdraft services. To anyone who's dipped into the red over a cup of coffee and inadvertently swallowed a $30 overdraft fee, it's a victory, right? Now if you have a negative balance, the card's simply declined. The only penalty is the loss of dignity as the cashier announces this to the world.

More recently, Dodd-Frank's Durbin amendment reduced swipe fees for businesses accepting debit cards from 44 cents to around 23 cents. Many people thought this, too, was a great move. But, here are a few of the realities:
Read the entire article in The Northwest Observer >