“My hope is that [Dodd-Frank] is not going to bury [the industry]; that banks have done and will do a stellar job in performing in their respective communities…” Patterson said, according to Westfair Business Online. “I think the impact of Dodd-Frank will most likely be seen in terms of the much higher costs and regulatory burdens at smaller and mid-cap banks that don’t have enough capital [and that] may not survive. And that’s not necessarily a good thing.”
Patterson, the former CEO at NewAlliance, said that community banks attempt to protect both the customer’s interests, as well as their own, when approving a large loan.
“It’s not just about the financials but it’s about who you are and the relationship that you want to establish with us so that in approving the loan, we try to make deals work; but we really want to make sure that our interests are protected, but I think more importantly we have to protect the interests of our customers…” Patterson said, according to Westfair Business Online.