Charter Wars
As we noted last week (see Client Report ILC16), House Financial Services Committee Democrats have now made it more than clear that they plan this year to pursue legislation to clip the wings of all of the non-traditional charters not moved outside their reach by OCC and FDIC actions during the Trump Administration. This we predicted (see Client Report ELECTION25) and so it will come to pass along with opposition by many Republicans. Once upon a time, charter wars were a wholly nonpartisan – if pitched – battle due to the strong, pervasive power of community bankers and pockets of counter-pressure from a few states and powerful companies. When the voting begins on the charter restrictions previewed ahead of the hearing, partisanship may well give way to agreement, agreement made still more probable by the entry of big banks into a fray once solely consigned to community bankers.