At House FinServ’s hearing on FRB supervision and regulation, Chair Yellen (standing in again for an un-nominated vice chair in this arena) strongly defended the central bank against an array of political, monetary-policy, and regulatory challenges. To be sure, Chairman Hensarling (R-TX) and many Members on both sides of the aisle supported recent “tailoring” actions and the Board’s new CCAR position in concert with the Chair’s emphasis on increasing community-bank relief. However, Republicans still criticized the FRB for what they believe to be undue adherence to FSB designation decisions and insufficient action to end TBTF. This report assesses today’s session, which also led many Members to preview the tough stand they will take tomorrow on Wells Fargo.
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