Shayna Olesiuk is the Director of Banking Policy at Better Markets. In this role, she advocates for banking and financial industry policies that promote economic growth and prevent financial contagion. She monitors activities at the Federal Reserve, FDIC, OCC, and the Treasury as well as developments in fintech and shadow banks.
Prior to Better Markets, Ms. Olesiuk served 23 years in various roles at the Federal Deposit Insurance Corporation (FDIC), most recently as the Deputy Director for Deposit Insurance and Risk Analysis in the Division of Insurance and Research. In that role, she was responsible for three key functions: management of the Deposit Insurance Fund, national and regional risk analysis, and international affairs. She led teams of economists and financial analysts in Washington, DC, and seven FDIC Regional and Area offices to assess and monitor economic conditions, banking industry trends, and financial market conditions. Her team produced the FDIC’s Quarterly Banking Profile, Risk Review, and the 2020 Community Banking Study. Before the FDIC, Ms. Olesiuk worked for the Federal Reserve Bank of San Francisco, focusing on monetary policy and international economics.
Ms. Olesiuk is a 1999 graduate of Saint Mary’s College of California where she completed a double major in Economics and Business Administration with an Honors Concentration in Financial Services. She currently serves on the School of Economics and Business Administration Dean’s Advisory Board. She also holds the Chartered Financial Analyst® designation and is an alumna of the Harvard Kennedy School Senior Managers in Government program.
In the Media
Capital
Sunday night football and the Basel III endgame (Risk.net)
What connects David Solomon, Blue Dog Democrats and the NAACP? The answer can be found in the halftime ads on Sunday Night Football – America’s nationally televised football game, which typically attracts an audience of about 20 million viewers. But it’s far from the usual feelgood, fast-food sell. …
Shayna Olesiuk, director of banking policy at Better Markets and a former regulator, who held various positions at the FDIC, says it’s true that for mortgages with lower down-payments or a higher loan-to-value, the capital charge would be higher. “But how banks choose to cover that higher capital charge [is their decision],” says Olesiuk. “They are choosing to pay very high dividends and buy back shares. We don’t feel like that’s their only choice and the websites are making it sound like it is their only choice.”
The largest banks also do very little mortgage lending, she adds. “It has been declining for decades as non-banks like Rocket Mortgage or Quicken take more share of mortgage lending.”
Banks left in limbo as regulators mull path forward for Basel (American Banker)
Washington’s controversial capital proposal is on hold indefinitely as regulators figure out a viable path forward for the reform package. In the meantime, the banking sector is left in limbo. …
Shayna Olesiuk, director of banking policy for the consumer advocacy group Better Markets, said the extensive opposition has contributed to a narrative in and around the banking industry that reproposal is necessary. In reality, she said, many of the concerns can be addressed by making minor adjustments to the proposal.
“In many ways, the amount of opposition to the proposal does feel like new territory,” Olesiuk said. “But despite this, we should not and cannot lose focus on the many important benefits of the rulemaking for the American people, like financial stability and increased lending through the ups and downs of the economic cycle.”
Debanking
House GOP hears crypto firms on Operation Choke Point 2.0 (Axios)
“If the crypto industry had followed the law like almost every other financial firm in the U.S., then it would not be crosswise with the regulators who are mandated to enforce the law and protect consumers, investors and financial stability,” Shayna Olesiuk, director of banking policy at the advocacy organization Better Markets, said in her spoken testimony.
Brokered Deposits
Bank allies say FDIC brokered deposit plan reflects outdated thinking (American Banker)
“The loophole was unjustified, dangerous and increased the likelihood of liquidity crises, bank failures and taxpayer bailouts including what we saw in spring 2023. We support making the definition of brokered deposits more inclusive of all types of risky ‘hot money’ that could amplify or aggravate a crisis, and impose supervisory penalties on banks that overly rely on brokered deposits.”
Bank Mergers
CFPB Says Capital One Stiffed Savings Customers Out Of $2B (Law 360)
Shayna Olesiuk, who is director of banking policy at Better Markets, a Wall Street watchdog group, similarly cast the CFPB’s lawsuit as “yet another reason” for rejecting Capital One’s application to acquire Discover.
That deal, Olesiuk argued, will consolidate the market in a way that could boost Capital One’s power to raise rates and fees on its large base of subprime credit card customers. Such competition concerns are “even more pressing given Capital One is actively deceiving its customers on which rates it is providing,” Olesiuk said.
Industry groups criticise ‘opaque’ US bank M&A rules (The Banker)
Shayna Olesiuk, director of banking policy at non-profit Better Markets, branded the final guidelines as “broad and vague” despite appreciating the OCC’s decision to remove automatic and expedited approval of certain bank mergers. …
According to Better Market’s Olesiuk, an “insufficient” merger review process has contributed to the “massive” consolidation in the banking industry over the past several decades. “Since the mid-1980s, the number of banks in the US has declined by roughly 70 percent, primarily because Wall Street megabanks continue acquiring smaller banks”, she added.
Bank Board Accountability
FDIC proposal sparks overreach debate between critics and supporters (American Banker)
Consumer advocates like Shayna Olesiuk, director of banking policy at Better Markets, said the proposal is an appropriate response to recent industry turmoil. Olesiuk — who served 23 years at the FDIC — said the 2007-2009 financial crisis and the spring 2023 bank failures proved how damaging inadequate corporate governance can be, both for individual banks and the financial system alike.
“The FDIC’s proposed size threshold is appropriate and prudent. As firms grow larger their complexity increases, the damage that their failure can cause to the American public and the financial system increases,” Olesiuk said.
Selected Op-Eds:
Climate-Related Financial Risk
California’s wildfires could spark a dangerous new banking crisis (American Banker)
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