A rare partisan split among US banking regulators spread to the Senate last week as two influential Democrats faulted Federal Reserve Governor Randal Quarles for a proposal to ease Wall Street’s capital requirements.
Sherrod Brown, the Senate Banking Committee’s top Democrat, and Elizabeth Warren, the Senate’s most vocal critic of Wall Street, bashed the Fed plan to loosen the supplementary leverage ratio for the eight biggest US banks.
The senators’ criticism at a banking committee meeting — a confirmation hearing for two Fed nominees — injects an unpredictable political element into a debate normally framed in wonky terms among interest groups. It also sends a signal to Trump appointees considering other Dodd-Frank Act rollbacks.
“I am very concerned,” Brown said, “with collective amnesia with regulators in place in other agencies and at the Fed who want to deregulate.”
Comment: Fed's partisan split on capital reduction plan spreads to Senate
22 May 2018 7:32am