Waters Pushes Biden to Reverse Trump’s Financial Services Deregulation

Dec 9, 2020Congressional Legislation, Federal Regulation, News

Last week, House Financial Services Committee (HFSC) Chairwoman Maxine Waters (D-Calif.) sent a letter to President-elect Joe Biden urging his administration to reverse deregulatory actions in the financial services sector undertaken by the Trump administration, and to coordinate an immediate response to the COVID-19 pandemic. 

“I urge your leadership at the Department of the Treasury and your regulatory appointees to immediately take action to restore and enhance regulatory safeguards that put consumers, investors and taxpayers first, and ensures the financial system is better prepared for unexpected events,” Waters wrote. 

As noted in American Banker’s coverage of the letter,  Waters pressed Biden to fire Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger, rework the Bureau’s debt collection and payday lending rules, and reestablish the CFPB’s fair lending and equal opportunity office.

She also urged the President-elect to rescind the Office of the Comptroller of the Currency’s Community Reinvestment Act and create a new rule to reinforce the anti-redlining law. She also recommended that Biden fire Federal Housing Finance Agency Director Mark Calabria and stop plans for mortgage giants Freddie Mac and Fannie Mae to exit conservatorship.

Additionally, Waters criticized Treasury Secretary Steven Mnuchin’s request to the Federal Reserve to close down CARES Act emergency lending facilities and return unused funds to the Treasury.

“If Treasury tried to make unused funds unavailable to your administration and the Fed going forward, it is vital that your administration quickly reverse any unlawful action by the Trump administration while utilizing and deploying whatever funds remain available to minimize job losses and stimulate the economy,” she wrote.

Click here for the full letter.

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