House Dems push legislation requiring banks to receive critical 'diversity and inclusion' rating

Fox News ^ | February 14, 2020 | Gregg Re

[lowbridge]

House Democrats are proposing that all banks and credit unions receive a new "diversity and inclusion" rating in an unprecedented step that would fundamentally alter federal regulators' critical "CAMELS" rating system that currently employs a series of metrics that solely assess the financial health of banking institutions.

The "Promoting Diversity and Inclusion in Banking Act of 2019" is draft legislation supported by Democrats on the House Subcommittee on Diversity and Inclusion, which was created by House Financial Services Committee chairwoman Maxine Waters Rep. Maxine Waters, D-Calif. Waters has long pushed for government-led diversity efforts, even as Republicans have challenged her knowledge of fundamental economic issues.

"We need to change it and we need to change it right away. The excuse that we can’t find any, that’s what I’m hearing from some of you, that’s not acceptable," Rep. Al Green, D-Texas, said at a Wednesday hearing held by the subcommittee. "When you have power, you have to use it. We have the power. Regulations may be the thing to do. I think the carrot was a good idea, but after having heard some things today, I think we have to move to the stick, that’s regulations.”

The CAMELS system, known as the Uniform Financial Institutions Rating System, assesses banks' (c)apital adequacy; (a)ssets; (m)anagement capability; (e)arnings; (l)iquidity; and (s)ensitivity to market risk, each on a scale of 1 to 5.

All of those categories involve financial information, and the CAMELS rating is then used by federal authorities that oversee and regulate banks; a failing CAMELS score is considered so significant that it is ordinarily hidden from public view to avoid a run on the bank involved.

But, the new bill proposes to amend the Dodd-Frank Wall Street Reform and Consumer Protection Act so that the CAMELS system adds an additional diversity category

[kearnyirish2]

“They learned nothing from the dreadful Obama years.”

They absolutely learned from the Obama years - that assimilation fails regardless of which party is in power. It is impossible to conceal at this point; now it is just about how to put money in the pockets of “preferred minorities” so they don’t feel left out.

This is just more “diversity tax”/de facto reparations.