CONTACT: Laura Peavey
(202) 457-8770
lpeavey@fsforum.com
“We Have to Have Institutions of this Scale and Diversification to Serve the United States’ Economy”
Financial Services Forum CEO highlights nation’s leading banks’ role in the U.S. economy, opportunities for regulatory improvements to support growth
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer joined “Macrocast,” hosted by Ed Hill, John Fagan and Brendan Walsh, to discuss the strength of America’s leading banks and their essential role in driving U.S. economic growth. Fromer also highlighted necessary financial regulatory reforms that would allow Forum members to provide even greater support to consumers, businesses, and communities across the country.
(Click Here to Listen to Interview)
Read highlights from the interview:
On the Strength and Stability of the Nation’s Leading Banks:
“The Forum represents the eight U.S. institutions known as Global Systemically Important Banks, or GSIBs. They hold $4.8 trillion in loans, they account for about three-quarters of activity in our capital markets, they’re leaders in asset management and asset administration, settlement, and a variety of other critical services.
“They are the most stringently regulated and supervised institutions, and as a consequence of all of that, they are the strongest and safest financial institutions in the world. And their focus, obviously, is on their customers and their clients, millions of them, they’re focused on working for America and supporting our $30 trillion economy.
“We have to have institutions of this scale and diversification to serve the United States’ economy.”
On Financial Regulatory Reforms to Unleash U.S. Economic Growth:
“Well clearly the Administration is going to focus on a number of initiatives that are intended to have positive macroeconomic effects and promote the strength of the U.S. economy. The financial services industry, and the banks in particular, are conduits of so much of that economic activity.
“We still predominantly operate under a very rigid and extensive set of capital requirements, liquidity requirements, requirements to maintain long-term debt issuances … And we’re coming out of a year in which we were kind of debating the last chapter of the post-crisis capital reforms, called Basel III Endgame, that project was not completed and so that’s still ahead of us.
On Expectations and Priorities for the Upcoming Fed Chair Powell Hearings:
“We have a host of rules, some of which have been proposed for adjustment, Basel being one of them, the GSIB surcharge is another one, the leverage ratio, which is proving to be, and has been, and will continue to be a source of friction in terms of liquidity in the treasury markets…
“So, I think some of the specific parts of the capital framework are issues that we hope Members of Congress will speak to next week with Chair Powell. And then in that broader context, having some assurance that the system is operating the way he thinks it should. For quite some time he has referred to the banking system, and the capital in the banking system, as about right…”
Please see the Forum’s “Observations and Recommendations for a New Administration and U.S. Economic Growth,” which further highlights the strength of America’s leading banks and the need for financial regulatory improvements.
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The Financial Services Forum is an economic policy and advocacy organization whose members are the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
Visit our website: fsforum.com