Brad Sherman Questions OCC Regulator on Erebor Crypto Bank Approval and Securities Fraud Concerns

Bank Regulation and Market-to-Market Issues

• 💡 Silicon Valley Bank collapsed partly because it was not forced to mark-to-market its securities, leading to regulators valuing them higher than their market worth.
• ⚠️ Bank regulators have not yet resolved this issue, potentially setting the stage for future disasters.

Operation Chokepoint Concerns

• 🎯 Operation Chokepoint is a concern where the government pressures banks not to provide services to legal businesses based on their industry (e.g., coal, payday lending).
• ✅ Regulators are urged to assure that banks and credit unions are not disfavored for serving legal businesses, ensuring access to financial services for all Americans.

Credit Union Volunteer Reimbursement

• 💰 The issue of reimbursing credit union board members for childcare costs incurred to attend meetings is being considered.
• ⏳ A decision on this relatively small but important matter is hoped to be made in weeks, not years.

Erebor Bank Charter and Political Influence Allegations

• 🧐 An article from Business Insider alleges that Palmer Luckey's Erebor Bank charter was fast-tracked due to his political network and close ties to regulators.
• ⚖️ If this claim is false, it constitutes securities fraud; if true, it implies undue influence from political donations.
• 🔍 The OCC Comptroller stated he is unfamiliar with the specific allegations but assured that the OCC treats all applicants fairly.
• 📧 Sherman intends to provide the article to the OCC and suggests they contact the SEC regarding potential securities fraud if favorable treatment was claimed to investors.