Industry associations concerned about Fed’s Basel III Endgame plans

Industry associations (American Bankers Association, Bank Policy Institute, Financial Services Forum, IIB and SIFMA) have submitted a letter to Fed Chair Jerome Powell.

“We are writing to express concern about a forthcoming proposal to implement the Basel agreement of 2017. While we will certainly await the details and plan to comment fully, the recent speech by Vice Chair Barr announcing the results of his “holistic review” of U.S. capital rules raises serious issues.

“Vice Chair Barr’s review apparently considered only the benefits of higher capital requirements and none of the costs, which will be borne by end users, small businesses and consumers across the country. Those costs are universally recognized in both academic research and, more importantly, real-world experience. No records of the review were provided; nor is there any evidence that it considered the interaction of the capital framework with other prudential regulations – seemingly the definition of a “holistic” review.”

The full letter is available at

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