At a hearing on Capitol Hill last week, lawmakers from both parties expressed interest in exempting small banks and credit unions from new financial rules, reported the Wall St. Journal.
But there must be a limit, warned two of the committee’s most pro-consumer voices:
Sens. Sherrod Brown of Ohio, the top Democrat on the powerful Senate Banking Committee, and Elizabeth Warren of Massachusetts drew a line in the sand: Legislation targeted at helping truly small lenders is fine, but bills that scale back rules intended for larger, riskier banks have no chance.
“The big banks are going to keep using the small banks as a cover for their special rollbacks… we shouldn’t fall for that trick,” Ms. Warren warned her colleagues.
Read the full WSJ article here.