Texas Business Report: Small Bank in Big Spring Takes On Dodd-Frank Law

The State National Bank of Big Spring claims that the controversial law is unconstitutional.
Sat August 4, 2012 3:34 am
Barclay Gibson

The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Texas this week.

Dodd Forsaken
An article in this week’s issue of the Economist tells the story of Texas’s 177th-largest bank and its crusade against federal finance regulations.

The State National Bank of Big Spring is challenging the controversial Dodd-Frank Act, which was introduced two years ago as a protection against predatory lending practices that led to the financial crisis of 2008. Large banks largely oppose the policy, but as the article reports, they tend to shy away from publicly criticizing it “out of fear that it could prompt retribution by regulators.”

However, the small bank in Big Spring has stepped forward to argue that Dodd-Frank is unconstitutional. In a lawsuit that may go all the way to the U.S. Supreme Court, the bank contends that the act disproportionately threatens the business models of smaller institutions.

The Bottom Line: The article reports that although “the bank has not repossessed a home in seven years or cost taxpayers

More Texas Monthly

Loading, please wait...