|
|
ABA warns farmers' capital at riskIn a comment letter sent Aug. 6 to the Farm Credit Administration, the American Bankers Association calls proposed regulations by the FCA "illegal, ill-considered and irresponsible." The ABA proposes that the FCA withdraw the proposed rule authorizing Farm Credit lenders to provide financing through debt and equity investments, including investments in venture capital funds. "Redirecting such a large percentage of farmer and rancher owned capital into financing long-term, uncertain, less liquid non-farm related projects threatens the safety and soundness of the Farm Credit System," the ABA said in its letter. "Should a percentage of the 'investments' fail, the owners of the Farm Credit System--the farmers and ranchers--and the country's agricultural industry as a whole would suffer severe consequences," said Edward L. Yingling, president and CEO of ABA. ABA also warned that the proposed rule, if adopted, would "shift FCS institutions away from their express statutory mission of serving farmers and ranchers." As of Aug. 6, more than 4,360 bankers have written letters opposing the proposal, pointing out that it is beyond the authority granted by Congress to the FCA to approve such a fundamental change in its statutory mission. The comment period closed on Aug. 15. The American Bankers Association brings together banks of all sizes and charters into one association that works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members--the majority of which are banks with less than $125 million in assets--represent more than 95 percent of the industry's $13.3 trillion in assets and employ over two million men and women. 8/25/08 Date: 8/15/08
Copyright/Privacy
Copyright 1995-2011. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com |
|
