The following is an open letter to Martin J. Gruenberg, FDIC acting chairman, from Louis Hernandez, Jr., chairman & CEO of Open Solutions Inc. Open Solutions Inc. is a provider of integrated enabling technologies for financial service providers throughout the United States, Canada and other international markets.

Congratulations on your nomination as chairman of the FDIC. As someone who has played an integral role at the FDIC over the last six years as vice president to former chairman Bair and as acting chair these last months, you will come into the job understanding the critical role the FDIC plays protecting consumers and supporting community banks.

It is a tumultuous time for the banking industry, and as you begin to cultivate how you will lead and guide the FDIC, I stress the current opportunity for your organization to be a lighthouse for regulators and policy makers. As your predecessor acknowledged, community banks need to be concerned by the implementation of new regulations.

While I understand that the FDIC does not directly write or set legislation, it still holds considerable influence on policy makers as an agent of the government directly impacting the banking industry. There are still considerable obstacles facing Main Street stemming from Dodd-Frank, including the inability of small businesses to obtain the needed credit to drive their growth, with the Independent Community Bankers of America noting the No. 1 complaint they hear is that regulators have gone too far and are choking off lending.

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Although we are currently stuck with the newly enacted Durbin Amendment, I ask that you keep close watch on the legislation; it has begun to undermine the health of community banks. One recent example in Laredo, Texas, International Bancshares Corporation, in reaction to reduced levels of interchange revenue, was forced to close 55 branches.

As the impact of the Durbin amendment looms large over community banks, it is not the only hindrance to the success of our community financial institutions and economic stability. Dodd-Frank calls for nearly 400 rules to be addressed by federal regulators. There is great frustration among the leaders of community banks, including Thomas Depping, who as chairman of Main Street Bank in Kingwood, Texas, was forced to surrender the banks charter and sell its four branches, noting that the regulatory environment is making it very difficult for banks to operate.

In Main Street America, our fear is that in an effort to protect consumers and stabilize the economy, both have been undermined. This fear is only heightened with the closings of International Bancshares, Main Street Bank and other similar community-based financial institutions across the country. Yet despite the current environment, our hope is that the FDIC will be sensitive to this issue as it fulfills its role.

Mr. Gruenberg, with your years as a staffer on the Senate banking committee and previous work at the FDIC, you have seen firsthand how crippling community banking institutions, the lubricants of our economy, has a tremendous ill effect on the U.S. economy. For economic recovery and growth, the FDIC must be a fierce advocate for the local economies of Main Street America, aiding the return of community banks to their rightful place as pillars of strength.

The FDIC has greater prominence and power than ever before. You have the opportunity to initiate real change truly helping the majority of our nation. As several recent polls and surveys have proven, including one from Raddon Financial Group, a majority of Americans prefer to bank with community institutions. I understand there are difficult tasks ahead, but we must listen to Main Street, which wants healthy and thriving community banks and small businesses on Main Street.

I have great hope for the future of the banking industry. I believe we are standing at the threshold of a possible renaissance for community banking through the utilization of fresh and creative thought leadership, coupled with the emergence of much needed innovation of technology and systems.

As Dennis Nixon, chairman and CEO of International Banc Corp. stated, "Government many times passes regulations that end up hurting the very people they were intended to help." The Durbin amendment is causing consumers to lose everyday banking solutions such as free checking, while community banks scramble to solve a significant loss in revenue due to interchange fee changes. These struggles are compounded by increased compliance issues and unnecessary regulations.

The FDIC can work with community banks and community bank organizations to right the economy by returning community financial institutions to their rightful place as trusted intermediaries. By recognizing what are the regulations and policies that correctly protect the consumer and stabilize the economy, the FDIC will return hope to Main Street. Collaboration will enable a successful future for the banking industry, there is power in community.

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