Bank Regulators Face the House and Senate
November 20, 2023
On November 14 and 15, the Senate Banking and House Financial Services Committees, respectively, heard testimony from the nation’s top financial regulators:
- Michael Barr, Vice Chair for Supervision, Federal Reserve Board of Governors (Fed)
- Martin Gruenberg, Chair, Federal Deposit Insurance Corporation (FDIC)
- Michael Hsu, Acting Comptroller, Office of the Comptroller of the Currency (OCC)
- Todd Harper, Chair, National Credit Union Administration (NCUA)
Why it matters: The hearings highlighted, in some cases, bipartisan lawmakers’ increasing frustration with the rapid pace of proposed rulemaking from the financial regulatory agencies.
The proposed bank capital requirements were a particular target, with Democratic senators, including Sens. Mark Warner (D-VA) and Jon Tester (D-MT), stating their concerns regarding the impact on mortgage and small business lending.
- Lawmakers on both sides of the aisle expressed concerns about more stringent bank capital requirements pushing more activity into the less regulated non-bank sector.
What they’re saying: In both hearings, lawmakers expressed concern as to the economic analyses accompanying the proposed regulations, as they were unconvinced as the cost-benefit. Rep. Jim Himes (D-CT) stated: