WASHINGTON–NCUA Chairman Todd Harper is among the witnesses scheduled to appear before the full House Committee on Financial Services today, and while the issue is not among the hearing agenda items he could find himself answering questions on credit union acquisitions of banks, among other controversial issues.
The hearing is also accompanied by numerous pieces of draft legislation in Congress, including NCUA oversight over third party vendors, that has set off considerable debate, as well as other pieces of legislation, as reported here.
Harper is set to appear as part of a hearing titled, “Oversight of Prudential Regulators: Ensuringthe Safety, Soundness, Diversity, and Accountability of Depository Institutions”
The virtual meeting is scheduled for 10 a.m.
In addition to Harper, others scheduled to testify include:
- Michael Hsu, acting Comptroller of the Currency
- FDIC Chairman Jelena McWilliams
- Fed Vice Chairman Randal Quarles
According to the House memorandum on the hearing, today’s event will focus on providing an update on the status of the institutions overseen by the four regulators, as well as issues related to diversity in banking.
The House memo notes that as required by Dodd-Frank, each prudential regulator maintains anOffice of Minority and Women Inclusion (OMWI) and is to report annually to Congress on theiractivities. The memo cites a Committee staff report on the diversity and inclusion data and practices at America’s largest banks and found banks generally lacked diversity in their senior ranks, corporate boards, and provided limited data on their investment with diverse-owned firms.
“Furthermore, as of December 31, 2020, there were 142 minority depository institution (MDI)banks and 520 MDI credit unions, which represents a decline of roughly one-third of theseinstitutions over the past decade,” the memo states.
Other Issues on Agenda
The hearing will also examine:
- The response to the pandemic by the prudential regulators, including updates on loan modifications and flexibility in supervisory and enforcement approaches
- Compliance with the Community Reinvestment Act.
- Fintech charters and bank partnerships, including instances where some fintechs have partnered with banks to engage in “bank-like” activities without being regulated like a bank
- Access to Fed payment systems by fintechs
- Cryptocurrency and Digital Assets
- Algorithmic Accountability
- Bank Mergers. “Several large mergers were approved by the Fed in 2020, including betweenMorgan Stanley and E*Trade, and between Charles Schwab and TD Ameritrade. In aFebruary 2021 speech, Governor Michelle Bowman suggested that the Fed may consider an update to its banking antitrust framework…” the memo states.
- The Durbin Amendment, which the Fed now says it is reviewing as merchants’ organizations argue banks are charging swipe fees that are way too high
- Ex-Offenders with Minor Offenses Seeking Employment.
Questions for NCUA
What is unknown is whether the banking industry will succeed in prompting any members of Congress to question NCUA’s Harper about CU acquisitions of banks. As CUToday.info has reported extensively, including today, bankers have been telling Congress the acquisitions are leading to a loss of tax revenue are also a threat to low and moderate-income communities.