Hartford Business Journal

20 Hartford Business Journal • July 30, 2018 • www.HartfordBusiness.com Opinion & Commentary OTHER VOICES As Hartford region evolves, so do chances for growth By David Griggs T he businesses and leaders that call this region home are world class in what they do on a global scale. We may be a small state, but we are big on innovation, technology, leader- ship and influence … all on a level that spans the globe. This is what I have learned in my short time as president and CEO of the MetroHartford Alliance, which aims to be a top-performing economic devel- opment partnership that grows the Greater Hartford regional economy. For more than 100 days, I have sat in various con- ference rooms, of- fices, restaurants, coffee shops and taverns meeting key influencers from throughout the Hartford region. Listening was key, and what I have found is the evolution of a region that believes in itself. The 'Hart' of a global economy Business is what makes this re- gion such a contributor to the local, national and global economy on many levels. I have learned early on what success looks like: • The Insurance Capital's global brands are leading the charge and are recognized worldwide as industry leaders in innovation. Insurtech is now. The insurance sector in Hartford continues to harness technology and data, recharging company culture and exploring new markets to refine, rethink and reinvigorate. • The Hartford region aligns with the state's longtime tradition of manu- facturing, and it is becoming more innovative and cutting edge than ever before. In addition, more than 1,000 aerospace manufacturers and com- ponents firms are located in the state, mostly within the Hartford region. • The Alliance's young profession- als group — Hartford Young Profes- sionals and Entrepreneurs (HYPE) — works to attract and retain talent. It is one of the largest and most active organizations of its kind in the coun- try with nearly 4,500 members who work in this community and network, participate in civic projects and en- gage with companies and educational institutions in the region. • Health and accessibility to world- class health care is one of the state's biggest assets and a key reason to do business here. Connecticut's citizens rank third in the nation in health, which speaks to the access of quality care that exists in Hartford and the entire state. • The entrepreneurial spirit is alive and well in Hartford with many inno- vative projects taking place through- out the region. One example is Stanley Black & Decker's recent announce- ment of the creation of Manufactory 4.0, an Advanced Manufacturing Center of Excellence in downtown Hartford. It is also developing the Stanley+Techstars Additive Manufac- turing accelerator, which will be man- aged by Techstars, one of the world's most recognized accelerators. • In addition to world-class Bradley International Airport and the new Hartford Rail Line connecting Hart- ford to Springfield, New Haven and points beyond, our proximity to Bos- ton and New York only enhances our viability as a place to do business. The future is now in Hartford The Alliance is starting to look at compiling data and research to tell our story more concretely. Those look- ing to do business here will certainly want to see the numbers around their industry and this region before they invest. We will also take our story on the road, meeting with site selectors, business leaders and other decision- makers to ensure they know what Hartford has to offer. We have all the assets in place to make Greater Hartford one of the most eco- nomically viable markets in the country — top businesses, sports and recre- ation, arts and culture, tourism and hospitality, improved transportation systems, vibrant cities, and top colleges and universities — and we look forward to working with our community and prospective businesses to ensure long- term economic growth. But economic development is a team sport, and we must collaborate to ensure sustainable success for generations. David Griggs is president and CEO of the MetroHartford Alliance. OTHER VOICES Rep. Himes showed courage on bank regulatory relief vote By Martin J. Geitz I n the past few weeks, two Connecticut community banks, each with well over 100 years of history serving central Connecticut, announced their sale to larger banks. Farmington Bank and First National Bank of Suffield are just the most re- cent examples of strong, well-managed, locally focused, publicly held communi- ty banks that concluded that excessive regulatory burden was too high a bar- rier to their ability to achieve competi- tive returns for their shareholders. In late May, Congressman Jim Himes showed great courage by voting for legislation to pro- vide regulatory relief to com- munity banks. Too late for Farmington and Suffield, however an important step for the 5,000 remaining com- munity banks in the country and 40 in Connecticut. His Democratic Party leaders, includ- ing other members of the Connecticut Congressional delegation, would have preferred him to vote in line with their obstructionist agenda. The Economic Growth, Regulatory Relief and Consumer Protection Act (Economic Growth Act) passed in the Senate and the House with enough Democratic support in both cham- bers to be called bipartisan. In our current polarized political environment, we rarely see bipartisan- ship. The extreme members of both parties often penalize moderates like Himes who seek to constructively ad- dress our country's challenges. Yet, our country's greatest legisla- tive achievements were the result of bipartisanship and compromise, including the Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990. The Economic Growth Act rebal- ances the one-size-fits-all regulations of the Dodd Frank Act that dispro- portionately burdened community banks and credit unions. The Dodd Frank Act was Congress' answer to the 2008 financial crisis, which was caused by excessive risk tak- ing by Wall Street investment banks, lightly regulated financial companies, and too-big-to-fail banks. Although community banks played no role in causing the financial crisis, Dodd Frank Act authors applied most of its require- ments to community lenders. Our banking system is the prod- uct of public policy enacted through legislation. Since the 1980s, legislative changes have favored large banks and resulted in a decline in Federal De- posit Insurance Corp.-insured banks from 15,158 in 1980 to 5,606 today. The Dodd Frank Act has accelerated the rate of consolidation because smaller banks lack the scale to handle its new regulatory requirements. According to the FDIC, 50 percent of the country's banking assets are controlled by nine banks. Eighty- three percent of the country's banking assets are controlled by 132 banks. Most of the Economic Growth Act's provisions address the 5,474 banks accounting for only 17 per- cent of the country's banking assets. These banks are neither a risk to the financial system nor to their custom- ers and most of the Economic Growth Act recognizes that. While the Economic Growth Act contains some controversial elements, it empowers regulators to ensure that adverse consequences are identified and addressed. The most controversial element is a change in the definition of a Systemically Important Financial Institution (SIFI). Dodd Frank im- posed heightened risk management requirements on all SIFIs. However, the Economic Growth Act has pro- tections from misbehavior of banks formerly deemed SIFIs and empow- ers the Federal Reserve to impose SIFI requirements on large banks. Community banks are the larg- est source of small business lending in the country. Most Congressional representatives like to say that they support community banks and the important role they play in the local economy. Yet, too many of those rep- resentatives failed to show up with their vote when it mattered. Congressman Himes is a Connecti- cut profile in courage for recogniz- ing that the survival of community banks was worth the compromises necessary to enact in the bipartisan Economic Growth Act. Martin J. Geitz is the president and CEO of Simsbury Bank. David Griggs Martin J. Geitz

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