Sen. Brown: Nonbanks should play by same rules as banks

One area where many lawmakers and bankers can come together is in the belief that everyone should be playing by the same rules, whether it be banking, crypto firms or fintech, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) said today at the American Bankers Association Washington Summit. Brown used his address to praise banks while making clear his disagreements with the industry on bank fees and the role of the CFPB, but he also stressed that nonbank financial institutions should be subject to similar regulatory oversight.

The Senate Banking Committee recently announced that starting next week, it would hold the first of several hearings on the failures of Silicon Valley Bank and Signature Bank. During a Q&A with ABA CEO and President Rob Nichols, Brown was asked about the role social media played in fueling the bank runs. The senator noted that one of the worst financial crises in U.S. history—the Panic of 1857—took place in part because of the invention and spread of the telegraph. “I don’t think we know yet” what role social media played, Brown said. Rather, “what makes the most sense is to state that we have a safe banking system, which we do,” he added.