Trump regulators vow to end left-wing 'shakedown' of US banks

Key Points:

• The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC) proposed new rules to end banks' practice of boosting regulatory ratings through donations to left-wing activist nonprofits under the Community Reinvestment Act (CRA).
• Under the new plan, banks must demonstrate direct lending to local families and small businesses to earn regulatory credit, while philanthropic donations will no longer count unless they directly support local credit needs.
• The proposal raises asset thresholds for community and intermediate banks, easing regulatory burdens and focusing evaluations strictly on credit services rather than deposit accounts.
• Senior Republicans praised the changes as reforms to stop what they called a government-mandated "shakedown" by activist groups like the National Community Reinvestment Coalition, which has pressured banks into large community benefits agreements.
• The Federal Reserve did not join the plan, meaning state-chartered banks under its system will continue operating under the existing CRA rules, and opponents, including some Democrat-led states, are expected to challenge the reforms legally.