Financial regulation is too complex and needs to be retooled to improve access to credit, President Trump’s nominees to two top banking regulators told Capitol Hill on Thursday.
Regulators need a principles-based approach that seeks to position boards as watchtowers for their banks while not subjecting directors to overly burdensome restrictions.
Fed Vice Chair-nominee Randal Quarles will likely face questions about his support for small banks, while Comptroller-nominee Joseph Otting must face fallout from his predecessor.
Federal regulators issued a proposal Tuesday that would increase the threshold at which commercial real estate transactions require an appraisal, a move that could give some lenders sizable relief.
House lawmakers including Jeb Hensarling are preparing to move on a series of targeted regulatory relief bills in an effort to give Senate Banking Committee Chairman Mike Crapo, R-Idaho, more leeway when he tries to craft a relief measure.
In his short time in office, acting Comptroller of the Currency Keith Noreika has already taken public digs at two other banking agencies and signaled he isn't going to play it safe.
While the bill recently passing the House is right to do away with overly burdensome regulations of Dodd-Frank, it is wrong to leave government without adequate tools to protect the financial system.
Senate Banking Committee Chairman Mike Crapo sounded optimistic Thursday about reaching a bipartisan deal for regulatory relief, but a hearing once again emphasized the gulf between what lawmakers are likely to pass and what the industry is seeking.
Fed Chair Janet Yellen called the Treasury's report a "complicated document" that shared many of the central bank's objectives, including reducing regulatory burden without sacrificing safety and soundness.
