Author: fsf

This week, federal financial regulators testified before the House Financial Services Committee and the Senate Committee on Banking, Housing, and Urban Affairs. Among the many topics covered was Basel III Endgame and the impact the proposed rule would have on everyone from small business owners to first-time homebuyers. Below are some notable comments from the hearings: It’s time… Continue reading Policymakers highlight the impact of Basel III Endgame

This week, federal banking regulators will make their regular trek to Capitol Hill to answer questions about a variety of topics. One of the issues that will be top-of-mind for lawmakers is Basel III Endgame, the controversial banking proposal that has been criticized by a broad-based group of stakeholders. The impacts of the proposal go far beyond… Continue reading Hundreds of stakeholders call on Washington to scrap Basel III Endgame

This week, Federal Reserve Governors Michelle Bowman and Lisa Cook discussed the potential risks of the nonbank sector to the economy. Basel III Endgame would only further exacerbate these risks by pushing financial activity and vulnerable consumers into the less-regulated shadow banking sector. This coincides with the Federal Reserve Board today finding, once again, that “the banking… Continue reading Basel III Endgame would exacerbate nonbank financial sector risks

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… Continue reading Manufacturers can’t afford Basel III Endgame

In today’s press conference, Federal Reserve Chair Jerome Powell said the Fed hasn’t “made any decisions on policy or process” and reiterated what he told lawmakers in March on potentially re-proposing the rule. “If we conclude that that re-proposal is appropriate, we won’t hesitate to insist on that.” Powell also affirmed that the Fed is committed… Continue reading Powell reiterates openness to Basel III Endgame re-proposal and importance of implementing rule comparable to foreign jurisdictions

This week is Small Business Week, a chance to celebrate the entrepreneurs and doers that make the American economy run. As we tip our hats to these trailblazers, it’s important to remember that Basel III Endgame would have negative real-world consequences for small business owners. Don’t take our word for it. Here’s what small business… Continue reading From bakeries to bridal shops: Small businesses would suffer from Basel III Endgame

Local community leaders and other stakeholders are sounding the alarm on Basel III Endgame’s impact on the municipal bond market. The nation’s largest banks account for almost half of municipal securities underwriting and hold $95 billion in municipal securities. Basel III Endgame’s restrictive capital requirements would limit the availability of funds for local governments issuing municipal… Continue reading Local communities can’t afford Basel III Endgame

As international policymakers convene in D.C. for the IMF/World Bank Spring Meetings this week, there is a growing divide between the U.S. and Europe when it comes to the amount of capital banks are required to maintain. U.S. GSIBs are already subject to standards that are more stringent than the requirements of foreign jurisdictions such as the… Continue reading U.S. competitiveness will suffer as a result of Basel III Endgame

The Washington Post editorial board wrote an editorial on Basel III Endgame this week, arguing that the proposal looks to solve the problems of the past while not taking into account new types of risks posed by the shadow banking sector. Here is what they said: The editorial board joins the growing list of bipartisan voices raising concerns about… Continue reading Washington Post Ed Board: Basel III Endgame looks backward, not forward

As global leaders congregate in D.C. this week for the International Monetary Fund & World Bank Spring Meetings, banking regulation will not likely be top of mind. Geopolitical and macroeconomic issues are likely to take center stage, and rightly so. Large banks have been a source of strength, resilience, and stability through the COVID-19 pandemic… Continue reading 4 questions that should be raised at the IMF & World Bank Spring Meetings