Proposed SEC Conflicts of Interest Rule–Reps Barr and Wagner Voice Concerns

Published on August 4, 2023

On August 1, Rep. Andy Barr (R-KY) and Rep. Ann Wagner (R-MO) wrote to the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, concerning the SEC’s proposed rule aimed at preventing conflicts of interest in securitizations. The letters highlight the proposed rule’s overly broad nature and potential unintended consequences – including potentially disallowing risk management and other hedging activities that are crucial to bank safety and soundness.