Senator to watchdogs: bring more banks to trial
(Reuters) – A senator critical of Wall Street took regulators to task on Thursday for failing to take banks to court over misconduct, coming out swinging in her first public appearance as a member of the Senate Banking Committee.
Elizabeth Warren, a Massachusetts Democrat, said U.S. financial regulators appear to have focused too much on ironing out settlements with large financial firms, as opposed to taking them to trial for alleged misconduct.
Her comments quickly became the highlight of a hearing with the heads of seven regulatory agencies responsible for cracking down on financial abuses and preventing another blowup like the 2007-2009 financial crisis.
“The question I really want to ask is about how tough you really are,” Warren said, drawing applause from spectators in the packed room during an otherwise low-key hearing.
“I’m really concerned that too-big-to-fail has become too-big-for-trial,” she said.