Kennedy, Scott and colleagues call on Biden administration to withdraw Basel III endgame proposal – press releases

Kennedy, Scott and colleagues call on Biden administration to withdraw Basel III endgame proposal – press releases

WASHINGTON – Senator John Kennedy (R-LA), a member of the Senate Banking Committee, today joined Ranking Member Senator Tim Scott (R-C.) and all other Republican colleagues on the Banking Committee in urging the Biden administration to withdraw the Basel III proposal for the end of the game.

Financial regulators are scheduled to appear before the committee on Tuesday to answer questions about the impact of regulations, such as the Basel III endgame proposal, on Americans.

“We have serious concerns that Basel III, as proposed, will restrict billions of dollars in capital from those who need it most, which will make it more expensive and limit the ability of millions of Americans to access credit. This is from “It would create severe negative impacts on the entire American economy, from everyday American consumers to the small businesses that are the backbone of our economy.” The senators wrote.

“Ultimately, these large capital increases have not been shown to be evidence-based, as the Federal Reserve, the FDIC, and the OCC have failed to provide adequate analysis or data to justify their benefits, particularly with respect to the costs they would impose in all Sectors of the United States. Economy, They said.

Lawmakers highlighted concerns that the proposal would impact affordable housing, mortgage lending, small business lending, and consumer lending, limit access to credit cards and home equity lines of credit, and put U.S. companies at a disadvantage to foreign competitors.

“As American consumers continue to struggle with persistently high inflation, declining access to affordable home ownership, and a slowing economy driven by the Biden administration’s reckless spending, any proposed changes to our banks’ regulatory framework must be based on demonstrable benefits and needs, not predetermined agendas that will not It only harms the economy and consumers alike. Accordingly, we urge you to withdraw the final Basel III proposal as written and urge the Federal Reserve, the FDIC, and the Securities and Exchange Commission to act in a more transparent and justifiable manner. They are done.

background:

  • In July, the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation issued a joint notice of proposed rulemaking to revise bank capital requirements, known as the Basel III endgame.

  • The revisions to the capital requirements in the proposal come from changes in international capital standards, which were issued by the Basel Committee on Banking Supervision in Switzerland in response to the financial crisis of 2007-2009.

  • Regulators intend to apply their rules to banks with assets exceeding $100 billion, which will affect the largest banks in the United States and change how lending and trading are conducted.

Senators Mike Crapo (R-Idaho), Mike Rounds (R-Ohio), Thom Tillis (R-North Carolina), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyoming), J.D. Vance (republican). -Ohio, Katie Britt (R-Ala.), Kevin Cramer (R-Ohio), Steve Daines (R-Mont.), Mitch McConnell (R-Ky.), Chuck Grassley (R-Iowa), John Cornyn (R-Texas), Lindsey Graham (R-South Carolina), John Thune (R-Calif.), John Barrasso (R-Wyoming), Roger Wicker (R-Missouri), James Risch (R-Idaho) ), Jerry Moran (R-Kansas), John Boozman (R-Arkansas), Mike Lee (R-Utah), Deb Fischer (R-Nebraska), Shelley Moore Capito (R-West Virginia), James Lankford (R-W. Virginia). Okla., Tom Cotton (R-Arkansas), Joni Ernst (R-Iowa), Dan Sullivan (R-Alaska), Todd Young (R-Indiana), Cindy Hyde-Smith (R-Miss.), Marsha Blackburn (R-Mo. (R-Tenn.), Mitt Romney (R-Utah), Mike Braun (R-Ind.), Roger Marshall (R-Kan.), Tommy Tuberville (R-Ala.), Markwayne Mullen (R-Oklahoma). ), Ted Budd (R-North Carolina), Eric Schmitt (R-Missouri) and Pete Ricketts (R-Nebraska) also signed the letter.

The full letter is available here.

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