Trump Regulators Target 'Shakedown' Scheme in New Banking Rules

The US Treasury Department's Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. have introduced new joint rules aimed at ending what senior Republicans call a 'decades-old shakedown' scheme. The plan targets the Community Reinvestment Act (CRA), which was designed to ensure banks meet the credit needs of local communities.

The OCC's Comptroller, Jonathan Gould, told The Post that the new rules will stop major banks from buying regulatory favor through donations to progressive activist nonprofits. Instead, institutions must prove they are directly lending to local families and small businesses.

Under the proposal, banks can still make philanthropic gifts, but those dollars will no longer count toward federal rating requirements unless the money directly supports local credit needs. The rules also narrow retail evaluations to focus strictly on credit services, excluding deposit accounts.