WASHINGTON–The political divide between Republicans and Democrats on the House Financial Services Committee was on full display during a hearing featuring semi-annual testimony from federal financial regulators.
NCUA Chairman Kyle Hauptman was among those who testified (see separate story here).
Chairman French Hill (R-AK) opened the hearing by saying that under the Trump administration the objective of the committee is to make “depository institutions of all sizes great again,” and that the “shared objective is to ensure that regulatory policy supports the needs of the banks and credit unions that serve hard working Americans across this country.”
Hill said the committee is working to reduce the “duplicative or untailored burdens on financial institutions of all sizes to ensure that they can continue to thrive in an increasingly competitive market.”
‘Focused on Core Mission’
“Republicans have been working alongside the Trump administration from day one to ensure that community banks remain viable, competitive and able to serve the needs of our local communities,” Hill said. “It’s crucial that prudential regulators remain focused on their core mission to safeguard the fundamental stability and safety and soundness of our financial institutions, rather than on trendy distractions that prioritize progressive climate agendas or DEI initiatives. That’s why our committee’s legislative and oversight agenda and the Trump administration are collaborating in leading the charge to shift our regulatory approach and return prudential supervision to this core mission. We saw what happens with the failure of Silicon Valley Bank when supervisors fail to keep their focus on the obvious, in plain sight material financial risks.”
Hill added that Biden-era regulations and guidance drove up costs for American home buyers and small businesses.
Waters: Independence Eroded
In her statement, Rep. Maxine Waters (D-CA), the ranking member, said the president’s policies are driving up the costs of groceries and Thanksgiving dinner and “squeezing families,” with the “American dream…slipping out of reach” for many.
Waters said the administration is also undermining the independence of the Federal Reserve and forcing independent agencies to “serve his personal interests.”
“Americans were promised a reduction in credit card interest payments. Instead, Trump and the Republicans are unlawfully shutting down the Consumer Financial Protection Bureau, the only federal agency focused on making sure that big banks and other financial institutions treat Americans fairly,” Waters stated. “…The Trump family has spent more time putting money into their own pockets then working for the American people. In fact, Trump and his family have received nearly $2 billion in cash gifts and crypto profits while our regulators work on crypto rules that could legitimize this corruption. We all know the adage that silence is complicity and I’m deeply disappointed by the ways in which my colleagues on the other side of the aisle have remained silent.”
A Challenge to Witnesses
Waters later challenged representatives from the Fed and OCC with a question related to the independence of their respective agencies, with both representatives declining to respond.
