Newt Gingrich, in his customary criticism of the financial regulation bill, Dodd-Frank, incorrectly asserted that the legislation is destroying community banks.
“The fact is Dodd-Frank led the biggest banks to get bigger,” Gingrich said during Monday night’s debate. “It is crushing independent banks. It has an anti-housing bias.”
Politifact ruled the statement as false when Gingrich made the same claim in New Hampshire in November. In fact, independent banks have actually gotten stronger since the passage of Dodd-Frank if measured by their return on assets, which has doubled.
Moreoever, the Independent Community Bankers of America issued a statement shortly after the passage of the bill, applauding certain measures for helping to “level the regulatory and competitive playing field for community banks,” while also outlining several harmful and negative provisions.
The Washington Post reported that several Republican candidates have made similar claims regarding Dodd-Frank’s impact on community banks, but the ICBA, instead of trying to repeal the legislation, is instead attempting to change certain provisions.