Senate Banking Democrats Take Quarles to Task
In the one-two punch we anticipated, Senate Banking Chairman Brown (D-OH) convened today’s hearing with FRB Vice Chairman Quarles not only to lambast supervision and regulation under Mr. Quarles’ watch, but also to reiterate the malign role he believes big banks play in the U.S. economy ahead of tomorrow’s hearing with GSIB CEOs.  Sen. Brown also argued that banks engage in systemic racism in part due to Fed tolerance of discriminatory behavior.  In sharp contrast, Ranking Member Toomey (R-PA) suggested that the type of focus Sen. Brown espouses on racial equity and worker equality is beyond the Fed’s mandate, reiterating criticism of “woke” Reserve Banks and saying this “mission creep” threatens Fed independence.