Consulting: How are banks moving to adapt to these changes?

Long: It's causing banks to really think through their risk management practices, how they set risk, how they measure it, how they report it up, how they escalate issues. For the smaller banks, Dodd-Frank has had a pretty significant impact. That's a tough deal for them. People are saying there will be consolidation and that community banks may disappear in the next 5 years. It's tough for them to compete at times, many of them have gone into more of a fee-income based model, but with the CFPD bearing down now on some of this stuff now, some of these community banks are going to look at their business model and find it may not work anymore.

Consulting: How do you imagine all of this regulation will change the landscape of the space going forward?

Long: That's what keeps me up at night. I worry about this. You go back to your days in grade school in your social studies class what did you learn every country needs? A good education system, a good defense system, a good healthcare system and a vibrant banking system. The banking system is on its knees right now. If we're going to get growth in the economy you have got to have a banking system that is working and that people are not afraid to make loans and do the things banks do. We're in this environment right now of just demonizing the financial services industry. They are not evil people. This is a capitalist society. There are shareholders that own these firms and obviously they have an obligation to protect their depositors.

One on One with Protiviti's Tim Long

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