Democratic presidential candidate Michael Bloomberg today released his plan for overhauling financial regulation, putting an establishment stamp on several proposals often associated with the Democratic party’s progressive wing. Specifically, Mr. Bloomberg’s plan endorses postal banking and a financial transaction tax, policies embraced by Sens. Sanders (I-VT) and Warren (D-MA). Going well beyond Obama-Administration proposals, Mr. Bloomberg has also released detailed GSE reform plans, recommending merging the GSEs into a single, government-owned mortgage guarantor. His regulatory reform plan supports imposing significantly higher capital requirements on the largest banks, subjecting all lenders to the CRA, and reversing recent stress testing, living will (see FSM Report LIVINGWILL21), and Volcker rule (see Client Report PROPTRADE26) actions. This report assesses the wide-ranging Bloomberg plan, which would also overhaul credit reporting and scoring, renew credit rating regulation, reinvigorate SIFI designations, impose new capital standards for crypto exposures, and redesign the CFPB. Echoing several initiatives of Rep. Carolyn Maloney (D-NY), the plan would also govern bank overdrafts and mandate beneficial-ownership disclosures.
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