Dennis Kelleher, President of the FDIC, has expressed concerns over a proposed merger between the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) into the Office of the Comptroller of the Currency (OCC).
The merger aims to create a stronger banking system by merging two key regulators. However, Kelleher argues that this would compromise the safety and soundness of banks and endanger consumers.
The FDIC protects bank deposits, while the CFPB regulates consumer financial products. A merger would eliminate the need for an independent agency head at the FDIC, reducing transparency and oversight. Additionally, the OCC has a history of failing to protect consumers, including its role in allowing subprime lenders to operate before the 2008 financial crisis.
Kelleher emphasizes that the banking agencies are crucial watchdogs that safeguard Main Street Americans’ savings and detect consumer harm. The proposed merger would compromise this vital work, putting the financial system and economy at risk.
The FDIC has been the gold standard for protecting savers’ bank deposits since its creation in 1934. A merger would also eliminate the focus on community banks, which are essential to local economies. Kelleher urges caution and a deliberate approach to any consolidation, ensuring that the American people and financial system are protected, not endangered.
Source: https://bettermarkets.org/newsroom/merging-the-fdic-and-cfpb-into-the-occ-would-be-a-disaster-that-endangers-consumers-community-banking-and-financial-stability