Democrats Target Epstein Ties to Banks for Action After Midterms

(Bloomberg) -- Key Democrats on Thursday unveiled legislation that would force federal regulators to disclose financial records related Jeffrey Epstein and his associates.

The measure also would require regulators to investigate banks and their executives for potential related legal violations.

The disgraced financier conducted substantial business during his career with JP Morgan Chase & Co., Deutsche Bank AG and Bank of America Corp.

Republicans currently control the congressional agenda but Democrats have previously succeeded in enacting legislation related to Epstein even with GOP lawmakers in the majority.

Last year President Donald Trump signed a bill requiring the Justice Department to release files after Republicans joined Democrats in demanding transparency related to Epstein, who died in prison awaiting trial related to sex trafficking of minors.

If Democrats win control after November midterms — an increasingly likely outcome — elections which would give them more power over what legislation moves forward.

In that case, bill author Senator Elizabeth Warren of Massachusetts would likely be the next chairman of the Banking Committee and co-author Robert Garcia is in line to head the House Oversight panel which has broad subpoena powers. Other sponsors include Democrats Ron Wyden of Oregon, who would likely head the Senate Finance Committee, and Connecticut's Richard Blumenthal who may head up the Senate's investigative subcommittee.

The Epstein Wall Street Record Act would force federal regulators including the Securities and Exchange Commission, Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation to make public within 120 days any supervisory records, including internal communications, related to Epstein or his former girlfriend Ghislaine Maxwell, who was convicted of sex trafficking offenses.

The law would require regulators to investigate any violations of banking, securities or anti-money laundering laws revealed in the files. Senior executives found in violation of the law could be barred from the banking industry, hit with fines or referred to the Justice department for possible criminal prosecution.