We continue our assessment of Treasury’s sweeping bank-reform recommendations with an analysis of its corporate-governance provisions. These are a relatively minor part of the paper but one Sen. Warren (D-MA) may well have targeted for additional criticism beyond that she and other Congressional Democrats have already leveled at the Trump Administration’s paper. As we noted Monday, Sen. Warren has sent the Federal Reserve a letter focused on Wells Fargo asking why directors have yet to be sanctioned for risk-management failures. We expect that she will sharply question FRB Gov. Powell on this point at Thursday’s Senate Banking hearing, using this to critique the “reset” he urged for regulatory corporate-governance scrutiny echoed in the Treasury paper.
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