California Attorney General Rob Bonta has joined a coalition of 16 attorneys general to oppose a proposed rule from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). The group filed a comment letter arguing that the rule would restrict federal regulators’ ability to supervise banks and enforce banking laws, potentially weakening consumer protections.
According to Attorney General Bonta, “Proactive and robust supervision of banks is crucial for our nation’s financial health and to protect the millions of Americans who rely on our financial system. Now, the Trump Administration is attempting to remove enforcement tools from the regulators who ensure that the banks where we keep our savings and deposit our checks are acting responsibly. The Trump Administration is ignoring the lessons of the Great Recession, making the same mistakes that nearly crashed our economy and upended the lives of Americans nationwide. Weakening supervision over banks is indefensible and puts working people and our economy at serious risk — I urge the Administration to reverse course.”
The coalition argues that less than two decades after the Great Recession, oversight remains necessary for stability in U.S. financial markets. They state that bank supervision should identify risks before they affect financial stability, referencing recent regulatory action which led to consumer refunds related to overdraft fees.
The proposed rule would shift away from proactive regulation by limiting federal authorities’ ability to monitor large institutions for risky practices. The attorneys general say this move continues previous efforts by federal officials during President Trump’s administration to reduce consumer protection work.
In their letter, they argue that dismantling current protections unwinds measures Congress put in place after past crises. They also warn it could hinder oversight as new financial products—such as cryptocurrency—emerge.
Attorney General Bonta was joined by attorneys general from New York, Arizona, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont and Washington D.C.
Bonta has previously taken actions aimed at protecting consumers in financial markets. He recently filed a lawsuit challenging what he describes as an unlawful decision by the Consumer Financial Protection Bureau (CFPB) not to fund its operations—a move he says prevents legally required functions from being carried out. He has also submitted amicus briefs opposing attempts by federal officials under President Trump’s administration to limit or dismantle CFPB activities.
After Congress overturned a CFPB rule designed to cap overdraft fees at $5 per transaction—a measure expected to save Americans billions annually—Bonta issued statements supporting stronger protections against such charges.
The California Attorney General serves as chief law enforcement authority for California with responsibilities including legal representation for state agencies and advancing civil rights initiatives statewide (https://oag.ca.gov/). The office also promotes transparency through public data portals like OpenJustice (https://oag.ca.gov/) and leads policy efforts in areas such as consumer economic security (https://oag.ca.gov/). Rob Bonta currently heads this office (https://oag.ca.gov/).