Rodge Cohen Interviewed by Bloomberg TV about Financial Reform Legislation

July 14, 2010

Mr. Cohen was interviewed July 14 by Bloomberg TV, which referred to Mr. Cohen as “one of the best known Wall Street voices on regulation,” about the new financial reform legislation. “I think the administration's basic objective has been accomplished,” he said. Mr. Cohen spoke about some of the potential negative consequences of the legislation such as the new assessment base for FDIC insurance and eliminating the prohibition on paying interest on commercial demand deposits. “That could be a very big number for a lot of banks,” he observed. He also mentioned that the provision extending “FDIC insurance on transactional accounts for two years without any limitation at all…could put pressure on banks around the world.” On the positive side, Mr. Cohen said, “if we have a safer and sounder banking system, funding should be cheaper over the longer term.” Asked what the heads of banks were most worried about, he said, “I think quite clearly it's the economy. Banks are a service part of the economy and if the economy is strong, then the banks will be strong…So it's jobs, jobs, jobs.”