Warren and Brown urge regulators to undo recent capital change
Two Democratic senators are calling on regulators to reverse their recent decision to ease a key capital requirement for banks.
Sens. Sherrod Brown of Ohio, the Senate Banking Committee’s top Democrat, and Elizabeth Warren of Massachusetts said in a letter Friday that a change to the supplementary leverage ratio that was announced in May “is dangerous and puts the economy and hardworking families at risk.”
“There is no justifiable reason to relax a key safety and soundness restraint by arguing that it is necessary for banks to support lending while simultaneously allowing banks to distribute capital to enrich their shareholders,” the senators wrote to Federal Reserve Vice Chairman of Supervision Randal Quarles, Federal Deposit Insurance Corp. Chairman Jelena McWilliams and acting Comptroller of the Currency Brian Brooks.
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