This week saw a renewed focus on banking regulation and criminal investigations in the United States. Manhattan District Attorney Alvin Bragg is expected to announce an indictment of former President Donald Trump next week based on a theory of Trump's payment of "hush money" to former stripper Stormy Daniels in the fall of 2016. This same theory had previously been rejected by the Justice Department, the Federal Election Commission and by Bragg himself when he was first appointed district attorney. The allegations are that Trump used legal expenses to conceal the payments which is a violation of Section 175 of the state laws.
The banking industry has also come under intense scrutiny following the two back-to-back failures of Silicon Valley Bank and Signature Bank and the bailout of First Republic Bank. This has led to calls for increased banking regulation with Sen. Elizabeth Warren (D – Massachusetts. ) (D-Mass. ) pushing to repeal a 2018 law that rolled back regulations in place in the wake of the 2008 financial crisis. The recent interest rate hikes of the Federal Reserve, levied as part of an effort to tame inflation, seem to have played a role in recent bank failures.
The potential indictments of President Trump and the woes of the banking industry have been widely discussed on the Sunday talk shows this weekend. Sen. Mike Rounds (R-S. : D. D. ), a member of the Senate Committee on Banking, Housing and Urban Affairs urges caution when discussing possible regulation, while House Financial Services Chair Patrick McHenry (R-N. C. C. ) is to join CBS'' 'Face the Nation'to discuss the issue.
The looming indictments of President Trump and the struggles of the banking industry are likely to be the focus of much debate in the coming weeks. With the legal issues still unresolved and economic implications far reaching, this is sure to be a highly charged and closely watched story in the days to come.