The Financial Institutions & Monetary Policy Subcommittee, part of the House Financial Services Committee, has scheduled a hearing on banking regulation. The hearing is entitled Rules Without Analysis: Federal Banking Proposals Under the Biden Administration.
While there is no information regarding the specifics of the hearing, at least part of the discussion will probably address recent moves by the Consumer Financial Protection Bureau (CFPB) aimed at banks.
On January 17th, President Joe Biden issued a statement on proposed overdraft rules that would “end excessive overdraft fees.”
“Today’s proposal would cut the average overdraft fee by more than half, saving the typical American family that pays these fees $150 a year. That would add up to save families $3.5 billion every year. Unfortunately, some Republicans in Congress continue to defend these exploitative fees.”
Earlier today, the CFPB announced the proposed rule. The CFPB’s proposed rule would deem fees for transactions declined in real time to be unlawful under the Consumer Financial Protection Act.
This is probably a stretch and more the bailiwick of Congress with its legislative power, but the reality of rulemaking today is you make the rule first and battle it in the courts later. At the same time, there is some nuance here that will probably be addressed at the hearing.
There are other issues that may be tackled, including the punitive Basel 3 rules that will increase the cost of banking for everyone.
The hearing is scheduled for 10 AM, Wednesday, January 31, 2024. The hearing will be live-streamed on the Committee’s website.