Last week, Senator John Thune (R-SD), joined by 10 Republican Senators including Senators Cornyn and Cruz, sent a letter to President Biden expressing “deep concerns” regarding the current regulatory positioning on climate risk.
The Senators focused specifically on the potential impact of credit availability to farm and ranch borrowers, and the devastating impact that such policies could have on rural communities, resulting in high prices and low availability of food. They referred to recent actions by the OCC, Fed, NCUA, CFTC and the proposed complex and burdensome SEC rule for publicly traded companies as reported upon previously in The Bottom Line.
“While the current rhetoric and regulatory proposals appear focused on ‘the big players,’ those of us in the community banking space have seen this movie before,” said Christopher Williston, IBAT President and CEO. “We are tremendously concerned that the regulatory focus appears to be moving away from safety and soundness, and toward social engineering. This will have significant negative implications not only on community banking, but also on customers across the economic spectrum and the economy as a whole. We urge caution, balance and a thoughtful assessment of such sea-change shifts going forward. IBAT appreciates Senator Thune, our two Texas Senators and the others who share our concerns as expressed in this letter.”