Basel III Endgame is facing criticism from a variety of stakeholders—including local leaders, small business owners, state pension funds, and advocacy groups—about the impact the proposal will have on their communities. 

Here's what we are hearing:

• Wisconsin State Rep. Francesca Hong noted in an op-ed that tougher banking rules would hurt minority-owned small businesses that are still trying to recover from the pandemic: "Unfortunately, a proposal from the Federal Reserve aimed at increasing capital requirements for banks would do the opposite — ushering in regulations that would make it harder for small businesses to grow, especially minority-owned small businesses that bore the brunt of the pandemic's impact." (Wisconsin State Rep. Francesca Hong, "Wisconsin State Journal: Rep. Francesca Hong: Tougher banking rules would hurt minority-owned small businesses," 11/1/2023)
• The State of Wisconsin Investment Board and the Ohio Public Employees Retirement System urged regulators to consider the unintended consequences on U.S. public pension funds and the retirees who rely on them: "We recognize the Agencies' interest in putting forward this Proposal, but we respectfully request that the Agencies consider the indirect impacts that the Proposal will have on entities that depend on the current banking system for liquidity and risk mitigation, like U.S. public pension funds. Understanding that any secondary impacts on our Systems were likely unintended, we are asking the Agencies to consider the changes discussed below. We believe they are consistent with the goals of the Proposal and will help to mitigate our concerns as market participants." (State of Wisconsin Investment Board and Ohio Public Employees Retirement System representatives Edwin Denson and Paul Greff, Letter, 2024)
• Aliquippa, Pennsylvania Mayor Dwan B. Walker said he has deep concerns about Basel III Endgame's impact on local infrastructure investment in a recent op-ed: "The need for communities like ours to invest in infrastructure is why I have deep concerns about a new proposal from the Federal Reserve that could financially handcuff Aliquippa and prevent us, and similar small cities across the country from breaking ground on much-needed projects. (City of Aliquippa Mayor Dwan B. Walker, "Trib Live: Dwan B. Walker: Communities depend on banks to invest in infrastructure," 1/19/2024)
• Brooklyn Park, Minnesota Mayor Hollies Winston explained in an op-ed that raising capital requirements would make accessing credit more difficult for his community members: "Families in my community already have difficulty accessing credit. The proposed actions by the Federal Reserve will make the situation worse, especially for Black Americans seeking to buy a home. (Brooklyn Park Mayor Mayor Hollies Winston, "Spokesman-Recorder: Closing Economic Opportunity Gaps," 5/22/2024)

Local communities will bear the brunt of Basel III Endgame. It's time for regulators to listen to these voices, scrap the proposal, and start over.