BUSINESS
05/29/2010 05:12 am ET | Updated May 25, 2011

Senate Banking Committee Slaps 'Giant Wall Street Banks,' Argues That Reform Helps Community Banks

The Obama administration and its congressional allies seem to be getting more aggressive in the push to pass financial regulatory reform. Last Wednesday, Deputy Treasury Secretary Neal Wolin lashed out at the Chamber of Commerce for its resistance to reform, calling its advertising campaign and lobbying misleading, dishonest and "backward."

Today, the Senate Banking Committee, chaired by Chris Dodd (D-Conn.), which recently passed Dodd's reform bill on party-line vote, takes a shot at "giant Wall Street banks" for manipulating the good reputation of smaller community banks in their lobbying efforts against reform.

On the committee's Website on Monday, staffers posted an article, "Fact Check: Community Banks Win With Financial Reform," which details several measures in the bill that will assist community banks around the country.

It begins:

WASHINGTON - Giant Wall Street banks are spending millions of dollars to lobby against financial reform.


These giant firms face one problem, money can't buy you love.

So, to try and sway public opinion, they are trying to take advantage of the well deserved reputation of their responsible smaller colleagues, community banks.

Some giant Wall Street firms abused their customers and took enormous risks that nearly brought down our economy while our nation's nearly 8,000 community banks have been responsible actors who have paid dearly for big banks' mistakes. The financial reform bill reflects those differences, imposing greater costs and restrictions on the superbanks, reining in the abuses that caused the crisis, but allowing community banks to continue serving their communities.

Read the whole piece here.