Now seven months into the implementation phase on the new Dodd- Frank law, the complexity of the issues and the sheer number of required regulations had unnerved the financial community. This hearing underscored the concerns of smaller financial institutions that fear regulatory burdens as regulators tackle abusive industry practices at the heart of the 2008 financial crisis.
Two panels of witnesses, mostly representing smaller financial institutions and small businesses, testified about the financial and operational burdens the new regulations might cause.
Traditionally, the minority party on the Financial Services Committee gets to invite one witness per panel for each hearing. The Democratic witness expressed a view that small financial institutions were protected under the new law and should embrace a new financial regulatory regime.