Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, convened a full committee hearing entitled, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions.” As it stands, America’s workers, small businesses, and communities are feeling the impacts of persistent inflation, an ongoing COVID-19 pandemic and Russia’s war in Ukraine. On top of that, our financial system is rapidly evolving with new technologies.
During this hearing, Committee Democrats, under the leadership of Chairwoman Waters, continued their oversight efforts to ensure that America’s banking system is working for all people. Committee Democrats explored a number of issues impacting communities, including the regulators’ efforts to:
- Work with Congress to ensure that crypto failures, like the most recent collapse of FTX, never happen again. *NOTE: The Committee will hold a bipartisan hearing next month to investigate the FTX collapse. *
- Promote diversity and inclusion in the banking system, both by ensuring workforce diversity within the agencies and supporting MDIs & CDFIs, which play a significant role in driving resources to Black, brown and low-income communities – who are often left behind by our nation’s major banks.
- End modern-day redlining by further strengthening and modernizing the Community Reinvestment Act (CRA) and strengthening fair housing and lending enforcement.
- Closely monitor the explosion of megabank mergers and acquisitions to ensure that vulnerable communities are not faced with fewer options at jacked up prices.
- Hold repeat offender banks that continue to violate the law and harm consumers accountable for their actions. No more slaps on the wrist.
- Take aggressive action against the threat of climate change by ensuring our nation’s financial services institutions understand their exposure to climate-related risks and have the tools to monitor and manage them.
- Keep a close eye on the impact of emerging financial technologies and artificial intelligence, and promote responsible innovation while protecting customers and investors who are engaging with these products.
Read Chairwoman Waters’ opening statement.
Watch the full hearing here.