Democrats Prepare New Scrutiny of Wall Street Banks
On November 5, Democrats were preparing a broad set of congressional inquiries into Wall Street banks, with control of both chambers expected to give them subpoena power in January. Potential subjects include fees, credit-card rates, mortgages, lending practices and whether President Donald Trump’s rollback of financial rules has increased risks to consumers or the banking system.
JPMorgan Chase could face questions about its long relationship with Jeffrey Epstein. The bank retained him as a client until 2013, although its wealth-management chief, Mary Callahan Erdoes, testified that she knew by 2006 of allegations that he paid for underage girls. JPMorgan expressed regret over its association with Epstein and denied wrongdoing. It paid $75 million to settle a U.S. Virgin Islands lawsuit and agreed to pay $290 million to Epstein’s victims, without admitting wrongdoing.
Sen. Ron Wyden, who could lead the Senate Finance Committee, posted “Subpoenas” after the election. Democrats on the committee responded enthusiastically. Sen. Elizabeth Warren is considered a likely contender to lead the Senate Banking Committee, while Rep. Maxine Waters could lead the House Financial Services Committee. Analysts expect more hearings and investigations, though Trump could veto legislation. Banks are also urging technology and social-media firms to step up efforts against scams, an issue that could draw bipartisan support.
Democrats Put Wall Street’s Consumer Costs Under Scrutiny
On November 5, Democrats were preparing to use their coming control of Congress to challenge Wall Street over costs and conduct that affect ordinary customers. Lawmakers may examine bank fees, credit-card interest, mortgage lending and whether President Donald Trump’s rollback of financial rules has exposed consumers and the wider system to greater risk.
JPMorgan Chase may also have to answer questions about keeping Jeffrey Epstein as a client until 2013. Its wealth-management chief, Mary Callahan Erdoes, testified that she knew by 2006 of allegations that Epstein paid for underage girls. The institution has expressed remorse for its association with Epstein while denying wrongdoing. It settled a U.S. Virgin Islands lawsuit for $75 million and agreed to pay Epstein’s victims $290 million, without admitting wrongdoing.
Sen. Ron Wyden, a possible chair of the Senate Finance Committee, posted “Subpoenas” after the election. Elizabeth Warren could lead the Senate Banking Committee, and Rep. Maxine Waters may head the House Financial Services Committee. The coming hearings offer lawmakers a way to press banks over consumer costs and accountability, even as Trump’s veto power could block major legislation. Banks are also seeking action against sophisticated scams, urging technology and social-media companies to help protect customers.
Democrats’ Bank Investigations Could Put Wall Street on Trial
On November 5, Wall Street faced the prospect of a more confrontational Washington as Democrats prepared to take control of Congress in January. Their plans include scrutinizing bank fees, credit-card rates, mortgages and lending, as well as questioning whether President Donald Trump’s financial deregulation has raised risks. Hearings may put bank executives in the political crosshairs even if lawmakers cannot enact sweeping changes over a presidential veto.
JPMorgan Chase could be questioned about its relationship with Jeffrey Epstein, whom it kept as a client until 2013. The bank has denied wrongdoing and says it regrets the ties. It paid $75 million to settle a U.S. Virgin Islands lawsuit and committed to a $290 million payment to Epstein’s victims, without admitting wrongdoing.
Sen. Ron Wyden, who could chair the Senate Finance Committee, posted “Subpoenas” after the election. Elizabeth Warren is widely viewed as a possible head of the Senate Banking Committee, and Rep. Maxine Waters could lead the House Financial Services Committee. Analysts expect more scrutiny of banks, while lenders say technology and social-media companies should help stop increasingly convincing fraud. That issue may offer room for bipartisan cooperation, but the wider agenda risks turning bank oversight into a campaign against an industry that has benefited from lighter regulation.
Reported by New York Post, Daily Mail US.
