Ambassador James Comer, R-Ky, deals with claims about the conservatives who are debacled and are weighed to the latest pardons of President Joe Biden.
The Senate Banking Committee on Wednesday held Debanking hearing In the financial services industry in the midst of the challenges facing companies in the cryptocurrency and cannabis industry, as well as politically motivated debinking of other customers.
Federal laws i Financial regulations They require that institutions in the banking industry close accounts for concern about things such as money laundering or illegal financial activities and concern about the risk of reputation.
Uncertainty about the emerging industry that have unclear regulatory frameworks, such as digital assets such as cryptocurrency or cannabis company in legal marijuana countries, have contributed to debanking, while regulatory guidelines have also resulted in fiery weapons manufacturers and traders are disassembled.
MPs on both sides of the passage have caused concern about deben and claimed that there should be greater regulatory clarity to prevent such incidents from not happening without explanation.
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The Chairman of the Senate Banking Committee Tim Scott, Rs.c., said he wanted a two -sided solution for debbling questions. (Win McNamee/Getty Images)
Chairman of the Senate Banking Committee Tim ScottRs.c., he said that “it was incredibly alarming and disgusting to hear stories of financial institutions that remove services to digital assets, political figures and conservative companies and individuals.”
“This issue should relate to every individual American, regardless of political affiliation, and that is why I am dedicated to a two -sided solution to stop this form of discrimination,” Scott added. “The message is crystal clear: no regulator and no bank is above the principle of honesty and access to the market.”
Senate Banking Committee Member Elizabeth WarrenD-Mass., Noted that debbing in one institution can cause a chain reaction that cannot access the buyer financial services at other institutions.
“Once the bank closes someone, the bank can share this information with companies paid to maintain the” No Banks “list with the result that the buyer is on a black list everywhere,” Warren said. “People should not be arbitrarily deprived access to their banks, locked from their accounts or seized banking privileges.”
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Warren said her staff identified 11,955 Customers’ complaints who have been debated in the last three years, and many have reported that they did not receive a warning or explanation and did not have the opportunity to challenge or regret decisions.
Said four banks – JPMORGAN Chase, Bank of AmericaWells Fargo and Citi – make up half of all complaints about Debanking. These are four largest commercial banks in the US, according to Federal Reserve data.
SENS. Tim Scott, Rs.c., Chairman of the Senate Banking Committee, and a member of the ranking of Elizabeth Warren, D-Mass. They are shown during hearing on the impact of debinking in the United States on Wednesday. (Stefani Reynolds/Bloomberg via Getty Images)
The Committee listened to the testimony of four witnesses: Nathan McCauley, executive director and co -founder of Anchorage Digital; Stephen Gannon, a Davis Wright Tremaine partner; Mike Ring, CEO and co -founder of Old Glory Bank; and Aaron Klein, a senior associate of economic studies at the Brookings Institution.
McCauley, whose company is a KRIPTO Bank This received a federal charter in 2021, said that in 2023, the partner bank, where the company held the corporation for two and a half years that it would close the accounts in 30 days. The reason was that the bank was embarrassed by the crypto clients, and the decision was made without Anchorage offered the opportunity to talk to the bank risk management team.
“Why did it happen? I believe that Regulators pressed banks In order to exclude the entire industry from the federal banking system, “McCauley said. He added that, while Anchorage eventually found a new bank home,” the influence of almost exclusion from the banking system was devastated. “
“It was extremely disturbing for our business and our clients and contributed to a very difficult decision to release 70 employees here in the United States, about 20% of our staff. Today, our clients lack the ability to send wire transfers to third parties,” he added. “Ironi, which has problems with access to the federal banking system, despite the fact that we are the federally authorized bank itself, cannot be overstated.”
Executive director of JPMORGAN Chasea Jamie Dimon recently called on financial institutions to have more clarity about what they need to do and cannot do in Debanking situations. (Victor J. Blue/Bloomberg via Getty Images)
During the hearing, Klein explained that, although the risks of reputation and preserving consumer trust, they may be vital to banks for banks, there may be a need for protective measures to prevent them from abused and used as a reason for completing clients’ relationships.
“Trust is the cornerstone of all banks,” Klein said. “Consumers believe that banks have their own money, and when the bank loses confidence, it has the ability to start on it. So, the need to consider the risk of reputation is real and important. It is possible that they be abused, and you need to have protective fences on it.
In his introductory word, Ring said that Congress should facilitate the creation of new banks to allow the debbling of the free market and for existing regulations.
“Senators, for all the conversations that they do not want banks that are” too big to succeed, “the opposite happened,” Ring said. “Large banks are getting bigger, small banks are constantly disappearing, and new banks are limited from launch. With so few banks, large banks have too much power over freedom and economics. Please, instead of imposing new demands for debinking, consider a transformed view of the existing the regulatory scheme on the banks. “
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Debancation incidents have encouraged accusations of presenting financial institutions of certain clients from political or ideological reasons.
Bank of America and JPMORGAN Chase denied that politics contributed to the debbling of decisions. CEO of JPMORGAN Chase Jamie Dimon He recently said that there should be better guidelines for banks on how to deal with such situations.
“I think we should let us tell you. … When we report things, the federal government should probably know about it and should be a far clean line about what we have to do and what we don’t have to do,” Dimon said in January on January Bank “Uneoblog”. “We have been complaining about that for years. We have to fix it.”
