Fresh scrutiny

Waters plans fresh scrutiny of nation's big banks

By ZACHARY WARMBRODT

Big banks are bracing for their CEOs to be called to testify soon at what could be an intense House hearing led by new Financial Services Chairwoman Maxine Waters, sources familiar with the matter said.

The details of the hearing, anticipated to happen by this spring, have not been finalized, but lawmakers and bank representatives are expecting it.

The banks that are seen as likely to be invited to participate include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. Spokespeople for several of the banks declined to comment, and others didn't respond.

In a preview of the kind of tone the lenders should expect to face, Rep. Emanuel Cleaver (D-Mo.) told POLITICO he wanted to hear from the executives "why we bail them out and can't experience any meaningful support from them in times of trouble."

In a speech last week, Waters pledged that the committee will keep an eye on the large banks and pay close attention to whether regulators were trying to weaken safeguards enacted after the 2008 financial crisis.

"It's probably not going to be a real syrupy sweet committee hearing," said Cleaver, a senior member of the panel.

The hearing would be another milestone in a push by Waters to step up oversight of the finance industry after years of Republican control defined by deregulation.

Waters herself has drafted legislation to break up big banks that abuse their clients and has singled out Wells Fargo for harming its customers.

In addition, the committee is now populated with progressive firebrands, such as Rep. Alexandria Ocasio-Cortez (D-N.Y.), who have also taken a hard line with Wall Street. Ocasio-Cortez has called for the breakup of "oversized" banks to reduce the likelihood of a financial crash.