ICYMI: Former U.S. Sen. Toomey on FBN: Debanking is an Un-American Abuse of Power by Regulators

“Debanking is a very real and very serious problem…vague and overly broad regulations put banks in an untenable position.”

In case you missed it, former U.S. Senator Pat Toomey (R-PA) appeared on Fox Business Networks’ “Mornings with Maria” last week to discuss debanking.

During the interview, Sen. Toomey explained that debanking is “a very real and a very serious problem” and emphasized that banks do not “want to lose customers – they need more, not fewer.”

Delving deeper into the forces at play, Toomey outlined what has led to the debanking crisis: “First, vague and overly broad regulations put banks in an untenable position, sometimes forcing them to debank customers while also preventing them from explaining why. Second, there’s outright political malfeasance.”

Toomey goes on to outline that the rogue regulations of Democratic administrations over the last decade to weaponize the financial system enabled debanking to flourish, showing blatant government overreach and abuse of power.

He concluded with a constructive path forward, urging Congress to take decisive action and commending recent legislative efforts, such as the FIRM Act, to address this issue. “Congress must act to ensure that future liberal administrations don’t repeat this. To their credit, Senate Republicans have passed a bill in committee that would significantly limit regulators’ discretion to impose politically motivated restrictions,” he said. At the same time, Toomey struck a balance by cautioning against government overcorrection, adding, “That said, we shouldn’t mandate that banks must do business with everyone — that’s not the role of government and would be a bad outcome.”

Watch Sen. Toomey’s remarks on “Mornings with Maria” HERE