December 13, 2019

Senate Banking Committee Democrats Demand Comptroller Otting Testify Before Committee

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs led a letter signed by all Committee Democrats demanding that the Office of the Comptroller of the Currency (OCC) Comptroller Joseph Otting testify before the Senate Banking Committee following the release of a proposed rule revising the Community Reinvestment Act (CRA).

“Revisions to the regulation for this foundational Civil Rights law will have a significant impact on low-income communities, communities of color, rural areas, affordable housing development, community development, and other underserved communities and activities across the banking system.,” wrote the Senators. “We respectfully request your timely appearance before the Committee to discuss this important proposal and its impact in detail.”

Comptroller Otting did not testify at a December 5, 2019, hearing in which the Committee heard from the other three federal regulators of depository institutions. A hearing with Comptroller Otting would also provide Committee members an opportunity to ask about other prudential matters the Committee discussed with his fellow regulators at that hearing.

This week, Brown blasted the FDIC and OCC for moving forward on a rule that overhauls the Community Reinvestment Act (CRA) giving a free pass for banks to discriminate against customers. The CRA – meant to address generations of segregation and discrimination in bank lending – is a critical accomplishment of the Civil Rights Movement.

A copy of the letter can be found here and below:

December 13, 2019

The Honorable Joseph M. Otting

Comptroller

Office of the Comptroller of the Currency

400 7^th Street SW

Washington, DC 20551

Dear Comptroller Otting:

We are writing to request that you testify at a hearing of the Senate Committee on Banking, Housing, and Urban Affairs before February 14, 2020.

The Committee held a hearing titled “Oversight of Financial Regulators” on December 5, 2019. Representatives from the three other federal regulators of depository institutions – the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration – provided testimony to the Committee on prudential regulation of banks and credit unions. We were disappointed that you were unable to attend and provide testimony with your fellow regulators during this hearing.

The Office of the Comptroller of the Currency (OCC) supervises more than 1,200 banks with more than $12.8 trillion in assets, or more than two-thirds of U.S. commercial banking assets. The OCC is also undertaking critical rulemakings that have the potential to transform our financial system. This includes your recent proposal to overhaul the Community Reinvestment Act (CRA). Revisions to the regulation for this foundational Civil Rights law will have a significant impact on low-income communities, communities of color, rural areas, affordable housing development, community development, and other underserved communities and activities across the banking system.

We respectfully request your timely appearance before the Committee to discuss this important proposal and its impact in detail. Your appearance will also provide members of the Committee an opportunity to discuss prudential matters, which we previously addressed with your colleagues during the December 5, 2019, hearing. We look forward to your prompt response.

Sincerely,

_____________________________ _____________________________

Sherrod Brown Jack Reed