WASHINGTON, D.C. – Senator JD Vance (R-OH) questioned CFPB Director Chopra during a hearing on the Consumer Financial Protection Bureau’s Semi-Annual Report to Congress regarding the regulatory system failures that led to the Silicon Valley Bank Collapse:
Watch Senator Vance’s full exchange here:
Senator Vance: “The Fed is both an over burdensome regulator, but also a very ineffective regulator, that they take up a lot of time and don’t actually do a whole lot to make the banking system safe…
“I really worry here that we’ve somehow created a system that is both overly burdensome on the financial institutions, including and especially those that are doing the right thing, and is simultaneously really, really ineffective at preventing systemic risk. We’ll certainly have more questions and more conversations in the in the weeks and months to come as we develop that policy…
“One of the things I consistently hear from folks back in Ohio is this fear that federal regulators in some ways treat the regional banks the same way they treat the big banks, even though the big banks have an implied lower cost of capital, because everybody knows that JP Morgan is going to get bailed out. But is it true that Huntington is going to get that bailout? Maybe, but maybe not, and that that problem is, I think, really, really bad for the banking system that we have. I won’t rehash the ways in which the Huntingtons of the world will make loans to businesses and consumers that JP Morgan won’t touch. I want to work to preserve that system, and I’ll work with whoever is willing to work with me on that.”
###