Mike Crapo

Jelena McWilliams is responding to concerns from Republican members of Congress that FDIC staffers are discouraging banks from doing business with certain industries.

In his second straight day of congressional testimony, the central bank’s top regulatory official was put on the defensive about a pending proposal to relieve regional banks from the toughest supervisory requirements.

Republicans on the Senate Banking Committee expressed concern that FDIC examiners are verbally discouraging banks from working with certain businesses.

The Senate Banking Committee's latest hearing offers some clues.

The Senate Banking Committee's latest hearing offers some clues.

Financial regulators sought to walk a fine line Tuesday between reassuring Republican senators that they are quickly implementing regulatory relief and defending themselves against Democratic criticism that they are going too fast.

Fed Vice Chairman of Supervision Randal Quarles said in written testimony that the central bank plans to move quickly to determine how to regulate banks between $100 billion and $250 billion of assets, and that it may provide also relief for banks over the $250 billion threshold.

Seven Republican senators urged regulators on Monday to consider additional changes to the Volcker Rule's "covered funds" definition.

The Senate Banking Committee said it is postponing a hearing on the implementation of regulatory relief for "logistical reasons."

Credit union groups are praising the committee's approval of Kathy Kraninger's nomination to head the Consumer Financial Protection Bureau in the face of strong Democratic opposition. Nominations for other positions also moved forward.