Sen. Kamala Harris and rising star Rep. Katie Porter are trying to add another line of enforcement over big banks. Their Accountability for Wall Street Executives Act would give state attorneys general and state law enforcement oversight over banks and the power to subpoena them in order to enforce state laws.
A 2009 Supreme Court decision says states can’t conduct such oversight, which could stop the next subprime mortgage-type crisis. That’s what Harris and Porter are trying to fix.
“As a former attorney general, I know firsthand how vital it is for state law enforcement to have the tools needed to conduct thorough investigations in order to hold bad actors accountable,” Harris said in a statement. “Congress must act to restore authority to state attorneys general to conduct oversight of national banks and ensure their compliance under state law. This bill will help put in place an additional layer of accountability for banks, which will protect consumers and prevent the type of illegal behavior that caused the Great Recession.”
The legislation is also, the Daily Beast’s Gideon Resnick points out, reason for Donald Trump to be nervous, since his big lender Deutsche Bank is among those that could face subpoenas if this bill passes.