Newt Gingrich says he will repeal the Dodd/Frank bill, an incredibly weak set of regulations that has done almost nothing to solve the systemic problems in our financial system, because it’s destroying community banks (banks with under a billion dollars in assets). And by destroying them, he means they’ve doubled their earnings.
“Community banks are 12 percent of the banks right now and 40 percent of the loans to small business,” Gingrich said. “And they are being destroyed by Dodd-Frank.”…
The first thing to note is that one year after the passage of Dodd-Frank, community banks are healthier. By convention, any bank with assets of less than $1 billion is a community bank. According to the latest report from the Federal Deposit Insurance Corporation, for that group of banks, a key measure of profitability, return on assets, has doubled in the past year, growing from 0.26 percent a year ago to 0.57 percent in the second quarter of 2011. Return on assets has been higher this year than in any quarter going back to the start of 2008 before the great meltdown.
So when his campaign was asked to provide evidence for this claim, here was their response:
We asked the Gingrich campaign to give us the data that informed the former House speaker’s belief. Staffer R.C. Hammond replied “It was his observation. How do you source an opinion?”
Obviously it wasn’t intended to be a factual statement. That explains all the percentages and stuff.