Federal Deposit
Insurance Corporation

I completely agree with Iowa Superintendent of Banking Thomas B. Gronstal’s comment letter dated June 9, 2005 on the subject regulation (see attachment).  As President of a small community bank, I can tell you that the regulatory burden is choking the life out of small banks, and therefore small communities.  I have been in the same community bank for over 21 years and the time and money spent on regulatory compliance today is more than double what was consumed as little as five years ago.

I believe the rapid increase in time and cost of regulatory compliance actually increases the risk to the safety and soundness of small community banks.  This time and money must be taken away from our commitment to grow our bank and community.  Our ability to be innovative in serving our customers and community is being assaulted by the regulatory burden.  Choking small bank innovation through regulatory burden is the competitive goal of the large financial institutions that spend their resources lobbying lawmakers and regulatory agencies rather than on innovation for the purpose of long-term business vitality and community economic development.  Community banks are a real threat to the large, regional and national banks and community banks are the life-giving economic blood of our communities nationwide.  How do we know this?  History shows that small business is the foundation of our great nation’s economy and research conclusively shows that the enabler of small business is community banking.  Choking small community banks with regulatory burden will adversely impact our national economy and the safety and soundness risk of the banking industry.

Dan Thompson, President
Davis County Savings Bank
109 North Madison St.
Bloomfield, Iowa  52537