CONTACT: Barbara Hagenbaugh
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bhagenbaugh@fsforum.com
Forum Comments on Reconsideration of Capital Regulations
“Getting this right is essential for the U.S. economy,” Forum CEO says
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement on U.S. capital requirements following a speech by Federal Reserve Vice Chair for Supervision Michael Barr:
“As we have said previously, it is essential that capital regulations avoid unnecessary and harmful impacts across the U.S. economy. The revisions should comprehensively address the concerns that have been raised by a wide range of commenters citing the likely costs on families and businesses of all sizes. The agencies should also provide detailed quantitative analysis and policy justification.
“We look forward to reviewing the revisions and participating fully in the public comment process. Getting this right is essential for the U.S. economy.”
Background
Since 2009, the eight U.S.-based Global Systemically Important Banks have more than tripled their high-quality capital to approximately $940 billion and have acted as a source of support, including during the pandemic and regional banking turmoil last year. The Federal Reserve said large banks were “well positioned to weather a severe recession” in its annual stress test review of capital adequacy this year.
For more information, please review the Forum’s related content on the GSIB surcharge and the Basel III Endgame and the “Americans Can’t Afford” website.
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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.
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