Illinois Congressman Mike Quigley (D-05) Introduces Treasury Department Small Financial Institution Advisory Committee Legislation

CBAI thanks Congressman Mike Quigley (D-05) for introducing legislation which in part establishes a Treasury Department Community Bank Advisory Committee. The Mike QuigleyCommittee will provide the Department with valuable advice and guidance on a broad range of important issues impacting community banks in Illinois and throughout the country as well as the communities they serve.

CBAI Chairman Kevin Beckemeyer, president and CEO of Legence Bank in Eldorado, said, “Congressman Quigley’s legislation will ensure the voice of community banks is considered in the policy making process. As an Illinois community banker, and on behalf of Illinois community banks, we truly appreciate Congressman Quigley introducing this important legislation.”

Community bank input and guidance is vital, particularly during times of crisis, to avoid such past Treasury Department missteps as:

  • the ill-conceived implementation of the Troubled Asset Relief Program (TARP), where the Department’s actions were tragically skewed towards rescuing the failing too-big-to-fail banks while denying much needed capital funds to community banks which resulted in hundreds of their failures.
  • the urgent implementation of the Temporary Liquidity Guarantee Program (TGLP), after deposits were first guaranteed for the too-big-to-fail banks and then money market mutual funds – leaving only community bank deposits unguaranteed which risked the liquidity failures of thousands of small financial institutions;
  • and the flawed rollout of the Small Business Lending Fund (SBLF), where a separate program for subchapter “S” institutions was later required because Treasury was apparently unaware of this type of corporate structure.

The Treasury Department has the responsibility to be knowledgeable about community bank issues, problems and opportunities. The Community Bank Advisory Committee, as proposed in Congressman Quigley’s legislation, will help Treasury fulfill its important responsibilities.

April 21, 2016