Emanuel Cleaver Calls on Banks to Work With Federal Employees During Government Shutdown
As the government shutdown enters its second month, Congressman Emanuel Cleaver (D-MO) last week called for banking institutions to work with federal employees who are impacted. In a letter to four major banking associations, the Congressman urged banks to contact customers and offer short-term loans and concessionary agreements to alleviate financial pressures. “Many of these workers live paycheck to paycheck and are facing extraordinary financial hardship as they struggle to make payments on mortgages, student loans, car loans, medical care, and other various financial obligations,” wrote Cleaver, a member of the House Financial Services Committee -- which handles legislation regarding the banking industry. “I’d like to see these banks reciprocate the same loyalty these customers have shown them by reaching out directly to federal workers and collaborating with them during these trying times.” Cleaver also called for the institutions to ensure that federal workers have access to no-interest short term credit lines with generous repayment terms, a practice that would be consistent with the guidance offered by federal financial regulators in a notice issued on January 11th and has already been implemented by a select number of financial institutions. The letter went to the American Bankers Association, Independent Community Bankers Association, Consumer Bankers Association, and the Mortgage Bankers Association. “These dedicated employees should not be penalized for the President’s refusal to sign the appropriations deal that Congress had agreed upon in December,” Cleaver wrote. Read the full letter here.