WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee blasted the Federal Reserve, FDIC and OCC for approving a number of actions that would increase risks to our financial system and weaken consumer protections for hardworking Americans.
The FDIC, Fed, and OCC finalized a rule that makes it easier for the biggest Wall Street banks to gamble on risky derivatives – the same bets that crashed our economy. The regulators also adopted rules exceeding the regulatory rollbacks in S. 2155, further scaling back safety requirements for the largest banks and putting taxpayers at risk of another bank bailout.
The FDIC and OCC went a step further in harming consumers by proposing a rule that would undermine state laws that limit interest rates on loans and allow unregulated predatory lending nationwide.
“Its déjà vu all over again. Yesterday President Trump’s ‘so called” regulators once again let the largest and riskiest financial firms off the hook, begging for another crisis,” said Brown. “President Trump and his cronies continue to roll out the red carpet for Wall Street and payday lenders instead of protecting hardworking Americans. This is disgraceful.”
Trump Regulators’ laundry list of rollbacks can be found here:
- FDIC, OCC, Fed Final Rule on Revisions to the Supplementary Leverage Ratio to Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping and Asset Servicing Activities. (S. 2155 rule)
- FDIC, OCC Fed Final Rule on Regulatory Capital Treatment for High Volatility Commercial Real Estate (“HVCRE”) Exposures. (S 2155 rule)
- FDIC, OCC, Fed Final Rule on Regulatory Capital Rule: Standardized Approach for Calculating the Exposure Amount of Derivative Contracts
- FDIC proposed rule on Federal Interest Rate Authority and OCC proposed rule to clarify “valid when made” doctrine