“We must undo the damage caused by the policy over the past four years: to build a strong Consumer Finance Protection Bureau and build resistance in the financial system with, for example, stronger capital and liquidity regulations,” he said. he said in June 2020.
Whoever is chosen as the controller of the currency will struggle over how to reduce the number of people outside the financial system – a circumstance that impairs their ability to get government aid or take out loans, especially if they do not have credit not scores.
The new regulator will also oversee the national banking system in a time of technological revolution, with traditional lenders facing both competitive and business opportunities from new internet lenders and financial programs – innovation that could lead to more efficient and equitable delivery of financial services, but also more consumer abuse.
Enforcement of the Community Reinvestment Act, a 1977 law designed to combat discriminatory lending practices by banks, is expected to be an early focus for regulators in Biden’s government. An auditor appointed by Trump, Joseph Otting, revised the historic anti-revocation law without the support of the other two federal bank regulators: the Federal Reserve and FDIC. Democrats and community groups also tilted against his move and the banks experienced skepticism.
The Fed has already begun work on an alternative approach.
Democrats have also called for a nomination of Biden to reverse other actions of the Trump-era OCC, including rules that they say make it easier for payday lenders to work with banks to circumvent government interest rates.
Baradaran teaches at the University of California at Irvine Law School, where she is co-dean for diversity and inclusion. She has written a book called “The Color of Money: Black Banks and the Racial Wealth Gap”, which focuses on the barriers faced by black-owned financial institutions, and the dynamics behind the barriers to wealth building. what black Americans face.
Barr is dean of public policy at the University of Michigan and a non-resident senior fellow at the Center for American Progress. He served as Assistant Treasury Secretary for Financial Institutions in 2009 and 2010 and before that served in the Obama White House. He also worked for the Treasury under President Bill Clinton.