Politicians and businesses battle over new bank regulations - WAOW - Newsline 9, Wausau News, Weather, Sports

Politicians and businesses battle over new bank regulations


WAUSAU (WAOW) --  Mark Matthiae is no stranger to the business world.  President of Crystal Finishing Systems in Schofield, Matthiae has certainly seen his ups and downs.

Now, after new financial regulations came out of Washington, some say it is more difficult for small businesses to get the financial help they need to grow.

"The regulations are stifling. Our hands our tied as far as lending abilities and our members are put in a position to not get what they need," Pat Wesenberg, CEO and President of Central City Credit Union.

But there has been some opposition.  Democrats, such as Congressman Barney Frank, say the new regulations have nothing to do with the economic slow down.  In a statement released Frank says, "It was the absence of laws banning bad mortgages or regulating speculation in derivatives that damaged small businesses - by causing the greatest economic downturn in 70 years."

But, Representative Sean Duffy disagrees.

"Banks and credit unions had nothing to do with financial crisis, but they are bearing the brunt of the regulatory reforms," Duffy says.

During the discussion, Matthiae stressed the importance of having a good working relationship with financial institutions.

"You need lines of credit to buy things, access to capital to expand. You need it all to grow," Matthiae said.

Rep. Duffy says the growth of small businesses is the key to an economic up turn.

"If banks and credit unions can't get more cash out the door to small businesses, then they can't expand and grow and create more jobs," Duffy said.

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