Manufacturers, which employ around 13 million American workers and accounted for over 10% of U.S. GDP in 2023, rely on banks to help them fund their activities and grow, manage payrolls, and mitigate risks such as those related to fluctuations in interest rates, currency exchange rates, and commodity prices. Basel III Endgame's restrictive capital requirements would increase the costs for manufacturers to conduct their regular activities. 

The result? American consumers will face higher prices for goods under Basel III Endgame.

Don't take our word for it. Here's what key stakeholders are saying:

• The National Association of Manufacturers warned that though Basel III Endgame may be aimed at the banking industry, its ultimate impact will be felt by U.S. manufacturers: "The Proposed Rule, if implemented, would have significant adverse consequences for manufacturers of all sizes throughout the U.S. In particular, it would harm smaller manufacturers who lack access to the capital markets and must rely on bank funding, manufacturers who do not have publicly traded securities, and manufacturers who rely on banks to help them manage financial risks. Inexplicably, the NPRM does not consider these significant costs in its economic analysis. The Proposed Rule may be aimed at the banking industry, but its ultimate impact will be felt by U.S. manufacturers." (National Association of Manufacturers, Letter, 1/12/2024)
• Kaiser Aluminum outlined how manufacturing companies rely on derivatives—which will be affected by the proposal—to hedge against price risks and ensure more stable and lower prices for consumers: "Like other companies, Kaiser Aluminum uses derivatives to efficiently manage price risks and ensure consistency and stability in earnings forecasts. The Company also uses derivatives as a hedging strategy that allows Kaiser Aluminum to provide a service to its customers: to sell firm priced metal for future delivery. The benefits of derivatives hedging flow to the American consumer through more stable and lower costs of goods and services, greater investment in innovation and job creation, and broader market discipline and economic and financial stability." (Kaiser Aluminum, Letter, 1/4/2024)
• Fed. Governor Michelle Bowman stated that the costs of capital increases will be felt by those who rely on bank services, including manufacturers: "Those who rely on these products and services will bear the cost of capital increases. For example, when a local government issues municipal bonds to finance local infrastructure, they may find that financing is more expensive, or in some cases unavailable. Manufacturers may find it harder to get loans to invest in equipment or facilities. Companies that operate on the international stage may find it more challenging to hedge their foreign exchange risks. Businesses may find it difficult to manage their interest rate risk exposures, or manage the risks of fluctuating commodity prices." (Governor Michelle Bowman, Statement, 7/27/2023) 

It's time for regulators to scrap the proposal and start over.