Community Banker Alert
To: Pennsylvania Community Bankers
From: Frank A. Pinto, President/CEO
Subject: Oppose the Cram-Down Amendment!
Date: December 9, 2009
PACB has been working with ICBA to protect the interests of community bankers in the hotly debated Wall Street Reform and Consumer Protection Act. Two of the eight bills included in the Act are very supportive of community banking- dealing with FDIC premium parity and a separately funded systemic risk fund that would be paid for by "too big to fail" institutions.
Unfortunately, Rep. John Conyers will offer an amendment to the Wall Street Reform and Consumer Protection Act of 2009 (HR. 4173), this week, that would do irreparable harm to our nation’s already unstable housing market and raise the cost of home ownership for all Americans. The amendment would allow bankruptcy judges to arbitrarily re-write the terms of a mortgage contract, including reducing the principal (“cramdown”), lowering the interest rate, and stretching out the repayment period.
PACB & ICBA strongly oppose this amendment and urge all community bankers to contact their House members at once and urge them to vote NO on the Conyers “cramdown amendment” (Conyers #201). Click here to call your Member.
For more information, visit ICBA's grassroots advocacy center..