Waters: Weakening regulations 'will come to an end'

by Francis Monfort15 Nov 2018

Rep. Maxine Waters (D-Calif.) has confirmed expectations that the change in leadership in the House Financial Services Committee signals the end of easing banking regulations, according to a CNBC report.

"Make no mistake, come January, in this committee, the days of this committee weakening regulations and putting our economy once again at risk of another financial crisis will come to an end," Waters said.

Waters, who spoke ahead of remarks by Randal Quarles, the Federal Reserve's vice chair of oversight for the banking industry, said efforts to loosen regulations on financial institutions would not be tolerated if she becomes committee chair.

Waters is expected to take over the committee when the new Congress convenes in January. Rep. Jeb Hensarling (R-Texas), who currently presides over the committee, did not seek re-election.

"It is essential that the Fed keeps a watchful eye on the financial institutions it supervises and makes strong use of its existing enforcement tools to crank down on institutions that break the law," Waters said. "I must say that I am concerned about proposals the Fed has put forth this year to reduce capital and liquidity requirements for the largest financial institutions, which would weaken strong safeguards established by Dodd-Frank to protect the US economy from another costly financial crisis."

CNBC reported that bank shares moved lower after it reported on Waters’ remarks.