WASHINGTON – Today, during a Senate Banking, Housing, and Urban Affairs Committee hearing, Senator Ruben Gallego (D-AZ) pressed senior banking regulators on how they vet bank charter applicants, including Trump family venture World Liberty Financial, questioned whether political connections influence the process, and why the National Credit Union Agency (NCUA) rolled back overdraft fee transparency.
Watch Senator Gallego’s questioning HERE and read excerpts below.
On Bank Charter Vetting and Background Checks
Gallego questioned Comptroller of the Currency Jonathan Gould on whether background checks are conducted on senior officials, including parent company executives when reviewing bank charter applications, highlighting the Trump family’s World Liberty Financial venture.
Gallego: “Do you conduct background investigations on senior officers including those at the parent company?”
Mr. Gould: “I’m not sure what you mean by background investigation. We are certainly looking at the management team and their capabilities.”
Gallego: “Let me read you a quote. […] ‘You can literally sell shit in a can wrapped in piss, covered in human skin for a billion dollars if the story is right, because people will buy it. I’m not going to question the right and wrong of all that.’ Do you know who said that? […] A gentleman named Chase Herro. Do you know who that is?”
Mr. Gould: “I do not.”
Gallego: “[Chase Herro] is a co-founder of World Liberty Financial. This is from their website. Is this the type of thing you would ask about when conducting interviews with applicants?”
Senator Gallego also highlighted the Trump family’s close ties to World Liberty Financial.
Gallego: “This gentleman seems to be involved with a lot of people that are fairly powerful, especially if their application will be going forward … including Donald Trump, Donald Trump Jr., Barron Trump. Do these sound familiar? Let’s add Steven Witkoff, Zach Witkoff, Alex Witkoff – a lot of family members. I urge you to take a serious look at the people who make up this company.”
On NCUA’s Decision to Stop Publicly Publishing Income Generated by Overdraft and Insufficient Fund Fees
Gallego then questioned NCUA Chairman Kyle Hauptman over his decision to stop requiring credit unions to publish data on their income from overdraft fees.
Gallego: “Would you agree that data transparency is a cornerstone of effective financial regulation? […] The NCUA records fee data because it serves the public interest. Last year under your direction, they stopped publicly publishing income from insufficient fund fees.”