Warren Set to Lead Senate Banking Committee as Wall Street Faces Greater Scrutiny

Democratic Senator Elizabeth Warren is expected to become chair of the powerful Senate Banking Committee in January, giving the Massachusetts lawmaker greater authority to investigate financial institutions and scrutinize the Trump administration, Jennifer Schonberger reported for Yahoo Finance.

Senator Elizabeth Warren is expected to lead the Senate Banking Committee in January, giving her greater oversight powers over financial institutions and federal regulators. [Photo: Elizabeth Warren Flickr]

Warren, a prominent consumer advocate known for her efforts to strengthen financial regulation, intends to use her expanded platform to advance legislation addressing affordability, with a particular focus on housing.

She is also expected to use the committee’s investigative powers to hold hearings and launch inquiries into executive branch ethics and corporate practices.

Her targets could include President Donald Trump, his administration, Wall Street and major technology companies over economic decisions she believes have increased costs for consumers.

Warren is also expected to seek greater protection for the Federal Reserve’s independence from White House interference.

As chair, she would have significant influence over the committee’s consideration of future nominees to key financial regulatory positions.

Wall Street is likely to face increased scrutiny under Warren’s leadership. Before Republicans lost control of Congress, lawmakers from both parties had regularly called the chief executives of major banks to testify before the Senate Banking Committee and the House Financial Services Committee.

That practice could resume under Democratic control. Stephen Biggar, a financial-sector analyst at Argus Research, said congressional hearings could improve transparency but were unlikely to result in significant regulatory changes on their own.

Biggar expects greater oversight, potentially stronger consumer protections and efforts to limit the expansion of banks’ market share, including through opposition to some mergers.

The industry also faces uncertainty over the future of Republican-backed deregulation efforts and proposals to reduce capital requirements for banks.