Small Banks, States Rip Paulson Plan

Critics deride plan as that of 'a bunch of guys from Wall Street'
By Jim O'Neill,  Newser User
Posted Apr 1, 2008 9:18 AM CDT
Treasury Secretary Henry Paulson announces the biggest overhaul of financial regulation since the Great Depression.   (AP Photo/J. Scott Applewhite)
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(Newser) – Small banks, credit unions, states, and assorted politicians wasted no time ripping into the Bush administration’s plans to rework federal regulation of the financial industry, calling it an amateurish attempt by a “bunch of guys from Wall Street,” reports the Wall Street Journal. “It’s because none of those guys ever worked in a regulated, chartered bank," said one lobbyist for small banks.

Small banks worry new rules will favor bigger banks, credit unions fear rules that could force them to behave more like banks, and states worry federal oversight won’t be as vigilant as a state agency can be. Democratic Sen. Chris Dodd, chairman of the Senate Banking committee, called the proposals a "wild pitch."