A Tale of Two Washingtons Awaits Wall Street Banks
“We are concerned about Wells Fargo,” mentioned Ms. Waters, who’s making plans to satisfy with the financial institution’s executives and may just name them to testify at a listening to.
She mentioned she additionally plans to seem sparsely on the efforts of Mick Mulvaney — the performing director of the Consumer Financial Protection Bureau — to weaken the bureau’s enforcement actions and at Mr. Trump’s ties to Deutsche Bank, which has confronted felony bother for laundering cash for Russian entities.
“We’ll work on trying to find out more about the relationship with Deutsche Bank, with him and his family and money laundering,” Ms. Waters mentioned, regarding Mr. Trump.
She insisted that, in exercising oversight authority, she isn’t attractive in retaliation for being disparaged as “low I.Q.” through the president.
“It has nothing to do with what he said about me,” she mentioned. “That’s meaningless.”
Ms. Waters mentioned she hopes to search out not unusual flooring with Republicans, together with on an overhaul of federal flood insurance coverage. But her priorities, for essentially the most phase, stand in stark distinction to these of her predecessor, Representative Jeb Hensarling, Republican of Texas, who spent the previous two years pushing to water down the brand new laws created through the 2010 Dodd-Frank legislation and to neuter the shopper finance watchdog arrange through the Obama management.
This yr, Mr. Hensarling helped shepherd thru a invoice that comfy some of the ones laws.
The 2010 legislation, for instance, established stricter rules for banks with a minimum of $50 billion in property. The new law raised the brink to $100 billion and recommended the Fed to imagine leniencies for even greater banks. Last month, the Fed complied, proposing to divide the most important banks into 4 classes. Under the proposal, just a few top-tier behemoths like JPMorgan Chase and Bank of America would nonetheless be matter to the hardest laws.
Under Ms. Waters, the committee — which has oversight of the Fed in addition to the banking business — is prone to scrutinize the Fed’s plans to melt rules.