Breaking the banks: IRS reporting law, comptroller nominee alarming local bankers - Yahoo News
Oct. 31—HARLINGEN — The community banking industry has been thrown into turmoil by new policies being proposed in Congress and by the Biden administration's nominee for Comptroller of the Currency.
One issue involves forcing banks to report any transaction above $600 — cash withdrawal, debit or credit card or check — to the IRS.
The second is the nomination of Saule Omarova as Comptroller of the Currency, a position which oversees all domestic and foreign banks operating in the United States, with hearings on the nomination currently being held in the Senate Banking Committee.
What's causing the fuss over her?
In a 69-page article published this month in the Vanderbilt Law Review, Omarova argues that all bank deposit accounts should be transferred to the Federal Reserve and placed in FedAccounts, eliminating the source of funds used by local banks to make loans to businesses and private individuals.
In addition, she proposes to allow the Fed in "extreme and rare circumstances, when the Fed is unable to control inflation by raising interest rates," to confiscate deposits from these FedAccounts to firm up monetary policy.
Also, she proposes eliminating the Federal Deposit Insurance Corp. that insures bank deposits.
Some say it would in effect nationalize banks in the United States, and the end result could mean the closing of thousands of local banks and limiting the availability of credit and banking services to tens of millions of Americans.
Local deposits
Steve Scurlock is director of governmental relations for the Independent Bankers Association of Texas, a trade group which represents community banks.
He admitted his agency and the banks it represents are baffled by the nomination of Omarova, a professor at Cornell Law School and a native of Kazakhstan. She graduated from Moscow State University in the Soviet Union in 1989.
" This is an unusual nomination, to say the least," Scurlock said. "I guess you could probably gather we are not terribly enamored with some of the things we've seen.
source: https://news.yahoo.com/breaking-banks-irs-reporting-law-040100357.html
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