He discussed efforts to improve the environment for rapidly consolidating community banks. Nichols said
A lot of the policy response intended for the larger banks has trickled down and impacted community banks. They are really hurting. We are worried about community banks that don’t have the scale to absorb a number of the regulatory body blows.
Nichols also addressed the Federal Reserve dividend lawsuit, filed just minutes before his appearance on Bloomberg. He noted that litigation is “always a last resort” but that other efforts to address the policy had failed, leaving the industry with no option but to “take it to the courts so they can sort it out.”
Watch the interview.