American Banker, June 30, 2023, BankThink No Deposit Insurance Hikes Without More Social Accountability For Banks
If the government is going to back deposits at a higher level, banks need to earn that extra subsidy by getting serious about underwriting the public good. Any deposit insurance hike should be conditioned upon the banking trades ending their assault on the CFPB, as well as a strengthening of CRA oversight.
I cannot, and will not, support a bill otherwise. No politician that truly cares about consumer protection should either.
Responsible actors in the banking industry will hasten to say that they do not oppose the CFPB, and also that they did not cause the recent problem. I suggest they put their money where their mouths are. Are CBA and ABA member banks comfortable with simultaneously arguing for more public subsidy and less responsibility to that public — particularly to people that banks historically excluded from the banking system? If not, why are they paying those organizations to do something they disagree with?
