In the 24 hours since President Joe Biden announced that he would not seek the Democratic Party nomination for president, the press has been analyzing and forecasting the positions Ms. Harris may take on a number of social and fiscal policy issues. Because my focus is on the banking system, I tried to nail down Ms. Harris’ position on the U.S. financial system. I would have been surprised if I found any in-depth policy stances. Ironically, that may be a good thing from a policy strategy standpoint.
In a recent article, American Banker notes that Ms. Harris’ does not have strong progressive credentials on banking issues. As an example, the article points out that Ms. Harris, as California’s attorney general, did not go after OneWest Bank for alleged abusive foreclosure practices.
Another example was Ms. Harris’ decision, as attorney general, to go it alone in settlement proceedings with a number of large banks regarding their foreclosure practices versus negotiating along with a group of other states.
Ms. Harris positioned herself as a consumer advocate in California, not surprisingly. Attorneys general tend to be one of a state’s primary consumer protection agencies. As the banking industry strategizes within an environment where Ms. Harris has not expressed a public position on banking, bearing in mind her default position as a consumer advocate, the banking industry could craft messaging that she can package via executive action or indirectly by persuading her cabinet or independent agency heads to promulgate.
I don’t expect much on banking policy from Ms. Harris over the next several weeks. Policymakers can either get too wonky with it or make it sound overly simplistic with populist overtones ala Elizabeth Warren. Given the integral role banking plays in moving capital, it will be a topic that cannot be ignored for too long.
Alton Drew
22 July 2024
For more on my view of the American political economy, buy my book at amazon.com/author/altondrew.
Lawyers Write the Bets. Bankers Sell the Bets. 