On the heels of last week's Senate Banking Committee hearing with the CEOs of the nation's largest banks, key media outlets highlighted the negative consequences Washington's proposed capital regulation will have on American consumers, homebuyers, and businesses.

Here is what they are saying:

• The Washington Post highlighted the impact the proposed capital increases would have on the racial homeownership gap: "The proposed capital rule would not apply directly to non-bank lenders. That disparate treatment could end up costing the neediest borrowers, some housing finance experts say. Minority home buyers tend to pay more than others in closing costs when buying a home, an expense that can cost up to 1 percent of their loan, recent research has shown. And the fewer lenders available, the more expensive these costs will be on account of the diminished competition." (Washington Post, 12/7/2023)
• Axios highlighted skepticism amongst Fed officials about the proposal's adverse effects on low-income and minority communities: "Even some top Fed officials have expressed skepticism about the proposals, warning about adverse effects for low-income and Black borrowers." (Axios, 12/6/2023)
• American Banker noted how some Democrats are becoming increasingly concerned about the proposed rules: "Moderate Democrats may hold the fate of the Basel III proposal in their hands. While lawmakers don't officially have the power to block or rewrite the rule, their political pressure on Fed Chairman Jerome Powell to drop or significantly rewrite the proposal may gain purchase. Powell has said he wants the proposal to have 'broad-based support' among stakeholders." (American Banker, 12/6/2023)
• Semafor called attention to the fact that Washington's proposed capital regulation plan is not addressing the problems it hopes to: "But this one—formally, and somewhat ominously, called Basel III Endgame for reasons that aren’t worth getting into—seems different. It feels like a solution in search of a problem, at least when it comes to the largest lenders, which not only weren't part of the problem in the spring but were actively part of the fix. Fed Chair Jerome Powell voted in favor of the Basel proposal but voiced skepticism early on, and has been aggressively (in Fedspeak, anyway) hinting that it’s likely to be reworked." (Semafor, 12/7/2023)
• Associated Press noted the warning from bank CEOs that Washington's proposed capital regulation plan could harm the economy: "The heads of Wall Street's biggest banks used an appearance on Capitol Hill on Wednesday to plead with senators to stop the Biden administration’s proposed changes to how banks are regulated, warning that the new proposals could negatively impact the economy at a time of geopolitical turmoil and inflation."  (Associated Press, 12/6/2023)
• Yahoo Finance called attention to Senator Warner's comments about the impact that the proposed capital regulation plan would have on lending: "I think that you've got the circumstance where interest rates are at a recent high, the idea of additional capital requirements and additional buffer beyond what's already in place will mean there'll be less capital available for lending.'" (Yahoo Finance, 12/7/2023)