Overdrafts Overtake Other Democratic Concerns
Although the GSIB CEOs got another earful at HFSC’s marathon hearing yesterday, it – like the Senate Banking session that preceded it (see Client Report GSIB18) – generated more anger than clear action plans.  Chairwoman Waters (D-CA) did not revive her megabank-break-up bill (see FSM Report GSIB11) making it implicitly clear that her priorities have shifted to the diversity and inclusion issues that have so far dominated Committee discourse.  These were of course top priorities for many Members at the hearing; Rep. Al Green (D-TX) pressed on “atonement” from banks in line with his focus on reparations and Rep. Greg Meeks (D-NY) pushed hard for corporate audits of racial equity, leading Citibank’s Fraser to say that her bank is considering undertaking one.  Ranking Member McHenry (R-NC) raised GOP complaints about the mixing of banking and politics but did so without the ire that distinguished GOP comments during the Senate hearing; several of his GOP colleagues were not so restrained.

GSIB19.pdf