Following the announcement that Morgan Stanley plans to acquire E-Trade, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, issued the following statement:
“In the wake of the Trump Administration’s regulatory giveaways to the nation’s largest banks, it is no surprise that yet another merger of this scale has been announced.
“The proposed merger of Morgan Stanley and E-Trade would be the largest acquisition by a megabank since the devastating 2008 financial crisis, providing new sources of revenue for Morgan Stanley at a time when megabanks are making record profits. This is especially concerning given the impact this merger could have on financial stability and the economy, as well as consumers, investors, employees and communities across the nation.
“In 2019, I convened a hearing with the CEOs of the largest megabanks, including Morgan Stanley, to hold them accountable to serving the best interest of consumers. I have also expressed major concerns about prudential regulators rubber stamping merger applications without giving Congress and the public the opportunity to appropriately weigh in.
“That said, the Financial Services Committee will be closely monitoring the regulatory review of this proposed merger and I continue my call on prudential regulators to put consumers first.”
In March and April of 2019, Chairwoman Waters convened hearings with the CEOs of eight of the nation’s largest financial institutions where Committee Democrats worked to hold them accountable on behalf of hardworking consumers.
In July 2019, Chairwoman Waters convened a full Committee hearing with the CEOs of SunTrust and BB&T to examine their proposed merger and the potential creation of yet another megabank that is too big to manage.
In May 2019, December 2019, and January 2020, Chairwoman Waters convened hearings with prudential regulators to examine to what extent they were promoting safety, soundness, diversity, and accountability for megabanks and other depository institutions.