Federal agencies plan three-year review of regulatory burden

Wielding tree shears and a chainsaw, banking regulators and trade association officials took aim June 3 at a two-foot tall, 9,000-page stack of regulations that will be scrutinized as part of an interagency effort to cut red tape.

The act symbolically kicked off the once-a-decade review of federal

The agencies-the FDIC, Federal Reserve Board, Office of the Comptroller of the Currency, Office of Thrift Supervision, and National Credit Union Administration-announced they have formed a joint task force to undertake a three-year review of 129 separate rules. The review will focus on finding more streamlined and less burdensome ways to regulate banks.

America's Community Bankers pledged its support for the effort. "Reducing the regulatory burden will free up funds for our institutions to invest in our communities and better serve our customers' financial needs," said Harry Doherty, ACBs second vice chairman, and chairman and chief executive officer of $6.9 billion-asset SI Bank & Trust, Staten Island, N.Y.

FDIC Vice Chairman John Reich, who was tapped by FDIC Chairman Donald E. Powell to spearhead the interagency push, said the extent of the regulatory burden is the No. 1 concern regulators hear about from bankers. "As a former community banker, I certainly understand this concern. I have lived it," Reich said.

"We are calling on bankers to help us determine how to improve and streamline the regulatory process," Reich continued. "We are serious about this effort, we are committed to it, and we intend to achieve results." he said the three-year time frame would allow sufficient time to solicit "substantial and significant" input from bankers as well as consumer groups and other interested parties.

To solicit bankers' views, the agencies are conducting banker outreach sessions in five U.S. cities. The events are scheduled for Orlando (June 11), St. Louis (June 26), Denver (July 15), San Francisco (Sept. 18) and New York (Oct. 15). ACB members interested in participating may contact Charlotte Bahin, senior vice president, for regulatory affairs, at (202) 857-3121 for further details.