"TRUMP ATE OUR HOMEWORK!" Senator Kennedy (Republican) challenges Federal Reserve

"TRUMP ATE OUR HOMEWORK!" Senator Kennedy (Republican) challenges Federal Reserve

In a recent Senate hearing, Senator John Kennedy of Louisiana raised concerns about the state of banking in America and the accountability of federal agencies overseeing the industry. The senator expressed his gratitude to the chairman for organizing the hearing but highlighted the pressing issue that some American banks under the regulatory purview are facing financial troubles and even failure.

With only five minutes allocated for the conversation with the six witnesses, Senator Kennedy emphasized the need for more hearings to provide adequate time for a comprehensive discussion. He also noted that when federal government officials make mistakes, there is often a lack of accountability, with no one being held responsible for failures.

Senator Kennedy drew an analogy with Elizabeth Holmes, the disgraced former CEO of Theranos, suggesting that if she had worked for one of the regulatory agencies, she might have received a bonus instead of facing consequences for wrongdoing.

Addressing Chairman Bar, Senator Kennedy summarized his understanding of the situation, stating that it seems like the federal agencies responsible for banking supervision are admitting to their failures but seeking more funding and authority from Congress as a solution. Chairman Bar clarified that they are not requesting additional resources but are committed to improving the supervision and regulation system to prevent future crises.

Senator Kennedy further questioned the chairman's acceptance of responsibility in light of the report's mention of Trump-era changes that impacted supervision negatively. He accused the chairman of deflecting blame onto these changes, which he likened to claiming that "Trump ate our homework." Chairman Bar rejected this characterization, stating that he takes full responsibility for their supervision and regulation and that the report is clear about it.

In conclusion, the Senate hearing shed light on concerns regarding the state of banking in America and the accountability of regulatory agencies. Senator Kennedy questioned the agencies' accountability and their commitment to addressing issues without seeking more resources, while Chairman Bar emphasized their dedication to improving the system. The discussion highlighted the need for further oversight and transparency in the banking sector.