Source: United States Senator Kevin Cramer (R-ND)
WASHINGTON — U.S. Senator Kevin Cramer (R-ND), member of Senate Banking Committee, joined Ranking Member Tim Scott (R-SC) in urging Federal Reserve Board Chair Jerome Powell to ensure the central bank reviews capital in a risk-based manner specific to institutions’ activity, size, and complexity. Their concerns are in reaction to comments by Michael Barr, Vice Chair for Supervision, who suggested the Fed would take a “holistic” review of capital standards.
“In 2018, the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) was enacted to address the overly broad and overly prescriptive implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as Dodd-Frank. As the Vice Chair of Supervision, Mr. Barr should adhere to the letter and spirit of the tailoring provisions as enacted by Congress. Reports of regulators’ efforts to unwind those tailoring reforms are concerning and do not comply with the law,” wrote the Senators.
“Members of this Committee must be fully informed and provided robust analysis. Furthermore, in your role as Chair of the Federal Reserve, it is incumbent on you to oversee any such review to ensure that the Federal Reserve’s work is consistent with the law, the risks, and the commonsense principles that support tailored capital requirements and the continued availability of a broad swath of financial services for everyday Americans,” concluded the Senators.
Joining Senator Cramer and Ranking Member Scott are Senators Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), John Kennedy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Katie Britt (R-AL), and Steve Daines (R-MT).
Click here to read the letter.