Are financial regulators a watchdog or a problem?

Federal financial regulatory agencies are either the solution to discrimination in banking or the cause of the discrimination, witnesses told the Senate Banking Committee at a hearing on the issue Thursday.

“Our nation’s federal financial regulatory agencies such as CFPB must utilize their statutory mandate to supervise U.S. lending institutions for enforcement of the Equal Credit Opportunity Act compliance,” Marc Morial, president/CEO of the National Urban League, told the committee.

Conversely, Rep. Byron Donalds, R-Fla., testified that this would only exacerbate the problems.

“Far too often, the heavy hand of government ushers in sweeping changes that radically transform our markets and implicate American taxpayers and consumers—rejecting transparency and denying debate by critical voices—through rulemakings and guidance, and by expanding the scope of government authority,” he said.


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