So much for standing up to the bankers:
In the face of opposition from bankers, U.S. Senator Susan Collins has agreed to ratchet back a proposal that would prevent banks from using so-called trust- preferred securities to appear better capitalized.How much do you suppose that was worth in 2014 campaign donations?
Diluting the measure would be a setback for the Federal Deposit Insurance Corp. The FDIC helped craft the language before Collins inserted it in the Senate’s financial-overhaul bill last month, according to a person close to the discussions who spoke on condition of anonymity, and FDIC Chairman Sheila Bair publicly endorsed the amendment in a May 7 letter to Collins.
Since last month, lobbyists for the ICBA, a Washington- based trade group representing about 5,000 smaller lenders, have met with House Financial Services Committee Chairman Barney Frank...They’ve also met with staff for Collins...
"Senator Collins will support modifications to address concerns of community banks regarding trust-preferred securities they have issued," Collins' spokesman Kevin Kelley said yesterday in an e-mailed statement.