Today, Congressman Blaine Luetkemeyer (MO-03) sent letters to financial regulators urging them to ensure that guidance is appropriately treated as guidance. As Chairman of the Subcommittee on Financial Institutions and Consumer Credit, Chairman Luetkemeyer frequently hears from banks that guidance is treated as though it were a rule, a process known as “regulation by enforcement.” Chairman Luetkemeyer released the following statement urging action on this important issue:

“As a former banker and bank examiner, I understand the importance of agency guidance but it is important to remember that guidance and rulemaking have their own unique roles in our economic system. It is critical to our banks that guidance is appropriately applied. Agencies should not use guidance as the basis of enforcement actions or supervisory directives. I urge the regulators to address this critical issue quickly.”

For the full text of Chairman Luetkemeyer’s letter to Vice Chairman Quarles, please click here. The full text of Chairman Luetkemeyer’s letter to other federal financial regulators can be found here.

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