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Ritchie Torres: “Should we have a new regulator or should it be a prudential…”

Featuring: Ritchie Torres, Democratic | U.S. House New York, 15th Congressional District

'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks

Published August 19, 2026 | Video Starts at 04:46

It's not a banking regulator in the traditional sense of the word. I think that's why the coordination between the banking regulators and the Federal Home Loan banks is so important. Should we have a new regulator or should it be a prudential regulator for a trillion dollar banking system? I'm not the brightest bulb in the chandelier, but that would seem to make more sense than right. (04:46–04:52)

CLAIM

Questions whether a new or prudential regulator should oversee the trillion-dollar Federal Home Loan Bank system.

This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.

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Ritchie Torres

“During the 2023 banking crisis, the federal home loan bank system made $675 billion in advances in a single week, the largest one week…”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 01:27-01:39
“Among the institutions that heavily borrowed from the system were Silvergate Bank, Silicon Valley Bank Signature and First Republic, all of…”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 01:39-01:51
“When the Federal Home Loan bank makes an advance to a failing bank, it secures a priority claim on high quality assets pledged as…”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 02:45-02:55
“In doing so, it reduces the pool of assets available to the FDIC as receiver and can potentially increase losses to the deposit insurance…”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 02:54-03:05
“The FHLB system is all but assured of repayment by its priority lien on pledged capital.”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 03:12-03:18
“The Federal Home Loan bank is a banking system, yet the Federal Housing Finance Agency is not a banking regulator.”
'There's A Problem Of Moral Hazard': Ritchie Torres Presses Expert About Advances To Failing Banks | Uploaded August 19, 2026 | 04:22-04:30