Politicizing consumer credit

Powerful politicians can interfere with the enforcement of regulations. As such, expected political interference affect constituents’ behavior. Using rotations Senate committee chairs to identify variation in power and regulatory relief, we study powerful politicians’ effect on consumer lending communities protected by fair-lending We find a 7.5% reduction credit access minority neighborhoods states new chairs. Larger reductions occur Community Reinvestment Act-eligible when Senators serve committees that oversee laws. Banks headquartered Senators’ are responsible for access.