President Biden’s Office of the Comptroller of the Currency today announced that it was halting publication of a final banking rule, pending review. The late Trump-era rule was aimed at stopping banks from denying loans and other services to politically disfavored industries and businesses. CEI financial policy expert John Berlau was outspoken against the rule and praised the Biden administration for giving it more scrutiny:
“OCC Acting Director Blake Paulson was correct to halt the highly flawed ‘fair access to financial services’ rule rushed through in the last days of the Trump administration. The regulation would burden banks of all sizes with more red-tape and government interference with financial transactions, adding more stress to an economy already hit hard by the pandemic. And ironically, the rule would likely do the most harm to the new banking entrants that benefitted from OCC’s laudable deregulatory actions in the Trump era.
“We again urge the Biden administration to do what it can to overturn this harmful rule and Congress to overturn it with a Congressional Review Act resolution, which hopefully will attract bipartisan support.”