Waters Introduces Groundbreaking Legislation to Shut Down Abusive Megabanks, Like Wells Fargo

WASHINGTON, D.C. - Following her release of a Democratic staff report titled “The Case for Holding Megabanks Accountable: An Examination of Wells Fargo’s Egregious Consumer Abuses,” Congresswoman Maxine Waters (D-CA), Ranking Member of the House Committee on Financial Services, introduced groundbreaking legislation that would hold megabanks like Wells Fargo accountable when they exhibit a pattern of abusive behavior towards hardworking American consumers.

“Rampant violations of consumer protections by megabanks are just as consequential to a megabank’s safety and soundness as capital levels or other indicators of bank health,” said Ranking Member Waters. “This is why my bill, the Megabank Accountability and Consequences Act, will require federal prudential banking regulators to fully exercise their authorities and shut down megabanks that repeatedly show indifference toward consumer protection. It’s time to hold these financial institutions accountable and put people over profits.”

The Megabank Accountability and Consequences Act, H.R.3937, requires federal prudential banking regulators, such as the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to fully utilize their authorities to shut down megabanks that repeatedly harm consumers and hold culpable executives accountable

Original cosponsors of the Megabank Accountability and Consequences Act are Representatives Michael Capuano (D-MA), Al Green (D-TX), Keith Ellison (D-MN), Marcy Kaptur (D-OH), John Sarbanes (D-MD), Pramila Jayapal (D-WA), and Jamie Raskin (D-MD).

The bill is also supported by Americans for Financial Reform, AFL-CIO, National Consumer Law Center (on behalf of its low income clients), PIRG, Public Citizen, and Rootstrikers.

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To view the bill text, click here.

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