The Senate Committee on Banking, Housing, and Urban Affairs in Action
The Senate Committee on Banking, Housing, and Urban Affairs convened on November 14th, engaging in a crucial hearing focused on the oversight of financial regulators. The meeting aimed to transform the lessons learned from this year into meaningful actions to safeguard the stability of the financial sector. Senator Sherrod Brown (D – OH), the Committee’s chairman, emphasized the significance of holding bank executives accountable and enhancing bank supervision. He stated, “It means improving bank supervisions, it means holding bank executives accountable for risky behavior that does in fact sometimes drive their banks into the ground.”
“We must turn the lessons of this year into action.” – Senator Sherrod Brown (D – OH)
Notable witnesses present at the hearing included Michael Barr, the Vice Chair for Supervision at the Federal Reserve, Martin Gruenberg, the Chair of the Federal Deposit Insurance Corporation, Todd Harper, the Chair of the National Credit Union Administration, and Michael Hsu, the Acting Comptroller at the Office of the Comptroller of the Currency. Senator Brown stressed the importance of passing the bipartisan RECOUP Act, also known as the Recovering Executive Compensation Obtained from Unaccountable Practices Act.
“Congress must finish the job and pass our bipartisan RECOUP Act.” – Senator Sherrod Brown (D – OH)
The discussion revolved around the need to hold senior bank executives responsible when they engage in risky practices that put customers’ funds at stake. This hearing served as a crucial step towards improving the regulatory framework surrounding the financial industry.
