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Reps. Watkins and Davids Introduce Bipartisan Legislation to Increase Transparency for Community Bank Shareholders

September 12, 2019
Press Release

 

 

Press Contact: Dylan.Jones@mail.house.gov

 

For Immediate Release:

September 12th, 2019

 

Reps. Watkins and Davids Introduce Bipartisan Legislation to Increase Transparency for Community Bank Shareholders 

 

Washington, D.C.— Reps. Steve Watkins (R-KS) and Sharice Davids (D-KS) introduced H.R.4267, the Independent and Community Banks Shareholder Protection Act. By amending the Federal Deposit Insurance Act, this bipartisan legislation creates a path for shareholders of independent and community banks to make a claim for just compensation if their financial institution is wrongfully considered insolvent.

 

Rep. Steve Watkins issued the following statement:

 

“Community and independent banks are the lifeblood of our rural communities and agricultural industry. These financial institutions serve Main Street America by investing in local homeowners and entrepreneurs. Under current law, no due process exists for shareholders who invest in these institutions to make a claim if their bank is foreclosed on. My bipartisan legislation creates a pathway for due process and will protect our community banks from big government overreach so that they can better serve our communities.”

 

Rep. Sharice Davids issued the following statement:

 

“Kansans know all too well the importance of increasing transparency in community and independent banks following the seizure of local institution Franklin Saving Association, which hurt our local economy and shareholders, and took place largely behind closed doors. I’m glad to join Rep. Watkins in introducing this bipartisan legislation to finally address this problem and protect community banks and consumers.”

 

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