CHAIRMAN SCOTT, SENATOR ROUNDS, AND COLLEAGUES SUPPORT THE FEDERAL RESERVE FINALIZING A REVISED BASEL III ENDGAME RULEMAKING

The following information was released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs:

Senate Banking Committee Chairman Tim Scott (R-S.C.) and Senator Mike Rounds (R-S.D.) sent a letter to Jerome Powell, Chairman of the Board of Governors of the Federal Reserve, and Michelle Bowman, Vice Chair for Supervision, supporting the Board's work to finalize a Basel III Endgame rulemaking. Joining Chairman Scott and Senator Rounds on the letter are Senators Mike Crapo (R-Idaho), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Pete Ricketts (R-Neb.), Kevin Cramer (R-N.D.), Bernie Moreno (R-Ohio), and Dave McCormick (R-Pa.).

"In assessing the final rule, we urge the Board to view capital requirements holistically," wrote the senators. "As part of this effort, the Board should endeavor to make sure that any proposal uses the baseline that existed before the post-pandemic capital ramp-up, not relative to today's elevated capital levels."

"Since 2020, aggregate common equity tier 1 ratios for large U.S. banks have increased by more than 20 percent. This rise was driven in part by the growth in the Board's balance sheet and the economy, not increased risk. Using current capital levels as the reference point would institutionalize excessive requirements, leading to higher costs and less access to capital for U.S. consumers and small businesses," continued the senators.

To read the full letter, click here.