Pub. 2 2014 Issue 4

www.uba.org 4 I t’s amazing the difference one elec- tion can make. I have been a strong proponent of political engagement, but I must admit, this election exceeded even my expectations of what could be possible. I understand that until Dodd Frank is un- wound as it relates to traditional banking, our success in the recent elections doesn’t count for much, but I am very optimistic that the political tides have turned and there are good days ahead for traditional banking. Here’s why. Politicians want to get re-elected and they want to win and keep their tribe in power inside the beltway. At some point, the economy and peoples’ pocket books are the biggest drivers of that equation. Politicians need economic growth and they need job creation. And that does not happen without traditional banks who understand their local economy and com- munities and take measured, calculated risks on the people and the industries that create jobs. The regulatory environment and all the political grandstanding coming out of Washington D.C. has hurt traditional banks and the people they serve. And finally, that pain has manifested itself in a message that members of Congress understand – the election. The traditional banking industry was more active in this election than ever before. It was a matter of survival. This was perhaps best demonstrated by the thousands of direct contributions gener- ated by a new SuperPAC called Friends of Traditional Banking. These Friends, from all over the U.S., focused their financial energy into two critical Senate races, supporting Joni Ernst in Iowa and Corey Gardner in Colorado. When these two races were selected by FOTB, both candidates were projected to lose. From that day forward, both candidates set fundraising records and went on to defeat their opponents com- fortably. The two losers in the races, Bill Braley from Iowa and Mark Udall from Colorado were outspoken advocates of Dodd Frank and of expanding outdated tax-subsidies for bank-like credit unions. Our message was delivered! There is now bi-partisan support for regulatory relief in Congress. And with the change in lead- ership structure, I believe that proposals will actually begin to move between the House and the Senate once again. On a local front, Utah bankers enjoyed another major victory when Mia Love was appointed to the House Financial Services Committee. Love, the daughter of Haitian immigrants, a first generation American, knows first hand the power of the U.S. free market economic engine and what it can do for people, especially the poorest among us. She also knows the critically important role of tradition- al banking in the American economic system. She will be perfectly placed to advocate for Utah, our banking system, and people who derive so much benefit from it, especially women and minorities. Utah supervises more banking assets than all but four other states! Last year Utah’s banks paid over $5.5 Billion in state and federal taxes, invested more than $5 Billion in our underserved communities, contributed over $5 Million to local char- ities, and provided over 400,000 hours of volunteer service. I am confident Mia will have all the ammunition she needs to be a significant and important new voice on the Committee. Elections can change the political, eco- nomic, and regulatory landscape. And we all know a change in scenery was badly needed. Now we must work like never before to seize the opportunity that has been created. We must be unified, fo- cused, and determined, and above all, we need to make sure members of Congress know we are not going anywhere! Unit- ed, we are a force to be reckoned with and we will not be satisfied by rhetoric, only results – for traditional banking and the communities and people we serve. n T he B ottom L ine By Howard Headlee, President, Utah Bankers Association One Election Can Make a Difference