Chopra Breezes Through Senate Banking as Senators Revisit Concerns Over AI, FRC Bidding Process
Today’s Senate Banking hearing with Director Chopra was even more cordial than yesterday’s HFSC session (see Client Report CONSUMER53) even though Republicans continued to criticize the Bureau’s recent rulemakings. Today’s hearing also showcased renewed focus on JPM’s controversial acquisition of FRC, with Sen. Vance (R-OH) grilling Mr. Chopra about the bidding process. Director Chopra emphasized that the least-cost test was adhered to and insisted that JPM’s bid was found to be higher than PNC’s, although he promised to provide the senator with more information. Chairman Brown (D-OH) raised serious concerns over AI lending decisions and explainability, while Sen. Warner (D-VA) called it an issue “tailor-made” for FSOC.