April 12 - Unlike Florida and Nevada, both still undergoing slow economic recoveries, Arizona’s laissez faire approach to government intervention has been instrumental in our recovery, say U.S. Representatives David Schweikert, R-Ariz., and Spencer Bachus, R-Ala. Bachus made the case for less government regulation at a banker roundtable in Phoenix recently at the offices of Brownstein, Hyatt, Farber and Schreck.
Bachus, currently the chairman emeritus of the U.S. House Financial Services Committee, served as chairman of the committee in the 112th Congress. He was a strong counter-weight to Barney Frank in crafting the largest regulatory reform of the U. S. banking industry in the modern era - the Dodd Frank Act.
“Dodd Frank is an example of Washington’s penchant for always fighting yesterday’s war,” said Bachus.
Rep. Schweikert brought Bachus to Phoenix to meet with business leaders. The Arizona Bankers Association co-hosted the event. The luncheon was attended by approximately 25 bank CEOs and senior bankers from throughout the state. Topics ranged from small business access to capital, mortgage reform, the nation’s debt problem and the demographic pressures on immigration reform.
When asked by Arizona MultiBank President Andy Gordon how the government could help make the peaks and valleys of economic trend lines less severe, Schweikert pointed out that the data show markets do a much better job of correcting economic dislocations than do governments.
“I can take you to Maryvale and show you neighborhoods that are now occupied and thriving because the markets were allowed to push distressed housing inventory through the foreclosure system. The system works when uninhibited by government obstructions such as mandatory mediation or judicial foreclosure statues,” said Schweikert.
Paul Hickman, president and CEO of the Arizona Bankers Association, said, “reforming the state’s punitive anti-deficiency statute would help even more in terms preventing bubbles from occurring in the housing economy and making contractions in that sector less severe.”
The Arizona Bankers Association is the 110 year old trade association for Arizona’s commercial banks. The association represents banks taking deposits statewide, from Tubac to Tuba City and all points in between.