Cutting corporate tax rates helps banks 

Since the November elections, many bank stocks have shot up 20%-30% in the "Trump Bump." Leaders at banks of all sizes are anticipating much needed regulatory reform, rolling back of the Dodd-Frank Act or at least its harshest provisions, and cuts in the corporate tax rate.

But if Congress's struggle to agree on big issues like how to deal with health care tells us anything, it is that dealing with the mammoth Dodd-Frank Act will also be challenging and may not come as quickly as the industry hopes.

However, there is momentum gaining for tax reform, and cutting corporate tax rates from 35% to 15%. "This would be the first win towards leveling the playing field with credit unions in years," noted FOTB Executive Committee member Guy Williams, who is also president and CEO of Gulf Coast Bank and Trust. 

For community banks, a tax cut "amounts to savings that can get reinvested or used to immediately boost profits," said Sam Pappas, president and CEO of Mystic
Asset Management Inc.

"While nothing is easy," notes Christopher Probyn, chief economist at State Street Global Advisors, "simplifying corporate taxes appears to be where Congress, Trump and business align in priority. The necessary support is there."

Friends of Traditional Banking leadership and members will be watching Congress closely to see if they can help deliver.

Less than 500 banks in the US?

By Robert Mendez

The CEO of Prosperity Bank in Houston, David Zalman, stated in an SNL Daily Dose article that there may only be 500 banks within 25 years due to the increased burden smaller banks have in managing IT and compliance.
We strongly disagree with Mr. Zalman's prediction on the number of banks, but we do believe he is correct that IT and compliance are getting harder to manage and that these issues have a disproportionate impact on smaller banks. It is more challenging than ever before for banks to rely on only one or a handful of IT persons for the wide array of technical and IT regulatory issues that a bank has to deal with today. However, Mr. Zalman appears to make an incorrect assumption that any bank smaller than his ($22 billion) has to have all of these capabilities in-house.
This message provided by a Corporate Friend of FOTB. If your organization is interested in becoming a Corporate Friend, email
Is your state represented?

We use the year between elections to build and grow our ranks. There is a place for YOU to serve in a volunteer role helping to strengthen the voice of banks in elections.

We have a goal of having each state represented on our Nationwide Banker Board to help us grow. Is your state represented? Please look at our leadership roster and see if you are represented: 

 Please let us know if you would like to learn more on how to get involved. Are you a leader? Email:
PAID for by Friends of Traditional Banking. NOT authorized by any candidate or candidate's committee.
 Friends of Traditional Banking is a non-partisan grassroots effort organized by bankers in 2012 to improve the political and regulatory environment for the traditional banking industry in the U.S. FOTB is the inverse of a PAC--instead of spreading a little bit of money to a lot of campaigns, they focus a lot of money on a couple of key campaigns.

Follow us on TwitterLike us on Facebook
Friends of Traditional Banking, 175 South Main Street, Ste 1420, Salt Lake City, UT 84111
Sent by in collaboration with
Constant Contact