06.6.2018 | Firm News
Tucker Herndon Interviewed by Nashville Business Journal on Regulations in the Banking Industry
The regulatory rollback, passed late last Month, contains three major benefits for local lenders, according to those familiar with the legislation. Those benefits include: reducing the costs of staying within regulatory compliance, eliminating annual stress tests for banks below the $250 billion asset mark and changing the rules associated with who can qualify for a mortgage.
Tucker Herndon, managing partner of law firm Burr & Forman’s Nashville office, said in a phone conversation the rollback means banks will “be able to lend money more easily.”
Under the new regulations, banks with $250 billion in assets will be subject to a yearly stress test to prove they can survive a financial crisis. Those organizations are deemed too big to fail. Previously, Dodd-Frank required those tests at the $50 billion level.
Herndon said this change means Tennessee banks that could hit that $50 billion mark in the coming years – such as Nashville-based Pinnacle Financial Partners and Memphis-based First Tennessee Bank – will “no longer have a collar on their growth.” Pinnacle has $23 billion in assets, while First Tennessee has $40.5 billion in assets, according to their most recent filings with the U.S. Security & Exchange Commission.
Read the full article “What this regulatory rollback means for Nashville banks.”