Coalition Warns Against RECOUP Act that Gives Vast Powers to Banking Regulators

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The Competitive Enterprise Institute and Americans for Tax Reform today led a coalition letter to congressional leaders opposing the RECOUP Act. CEI’s John Berlau explains why the bill must be stopped:

“Thirty-five public policy leaders – representing a variety of groups within the center-right movement – have signed on to this letter calling for rejection of the RECOUP Act, because they recognize that the bill could further weaponize U.S. banking regulation. The signatories urge Congress to halt the legislation that gives bank regulators massive new powers to remove bank leadership for vaguely defined ‘risk control’ failures that could include simply doing business with politically disfavored industries. The policy leaders express particular concern that Congress will insert the legislation into a must-pass bill to bypass important debate about the RECOUP Act’s harmful, far-reaching provisions.”

The RECOUP Act has so far been passed by the Senate Banking Committee.