CONTACT: Elizabeth Maness
(202) 821-7542
emaness@fsforum.com
“Capital isn’t free,” Forum CEO says.
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today following a speech by the Federal Reserve vice chair for supervision:
“A little over a week ago, as it released the results of its stress tests, the Fed said the results showed ‘large banks are well positioned to weather a severe recession and continue to lend to households and businesses.’
“The nation’s largest banks have more than tripled their highest quality capital and doubled their liquidity, making them strong, resilient, and a source of strength in times of economic uncertainty.
“Fed Vice Chair for Supervision Barr appears to believe that the largest U.S. banks need even more capital, without providing any evidence as to why. The Fed should release its holistic review with supporting data and analysis, prior to issuing regulatory proposals.
“Capital isn’t free. Further capital requirements on the largest U.S. banks will lead to higher borrowing costs and fewer loans for consumers and businesses – slowing our economy and impacting those on the margin hardest. We call on regulators to consider these implications carefully.”
Learn More:
- Go to smartbankcapital.com to learn more about the strength and resiliency of the nation’s largest banks and the costs of higher capital requirements.
- To understand the facts on capital requirements for the largest U.S. banks, view Separating Fact from Fiction.
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The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of 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, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.