WASHINGTON – U.S. Senator Kevin Cramer (R-ND), member of the Senate Committee on Banking, Housing, and Urban Affairs, joined his colleagues in a letter regarding the recent Basel III Endgame proposal issued jointly by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
In response to the financial crisis from 2007 to 2009, Basel III Endgame was created to set the standards for capital reserves, liquidity, and leverage at financial institutions. As proposed, Basel III Endgame would restrict billions of dollars in capital from the institutions who need it most, resulting in more limited access to credit for millions of Americans.
“This would create severe, adverse impacts on the entire U.S. economy, from every day American consumers to the small businesses that are the backbone of our economy,” the senators wrote. “Ultimately, these large increases in capital have not been shown to be evidentially based as the Federal Reserve, FDIC, and OCC have failed to provide proper analysis or data to justify their merits, particularly around the costs they will impose throughout all sectors of the economy. In fact, we have heard widespread concerns regarding the negative impacts that Basel III could have not only on affordable housing but on mortgage lending writ large, small business lending, and consumer lending.”
“As American consumers continue to struggle with persistently high inflation, reduced access to affordable homeownership, and a slowing economy driven by the reckless spending of the Biden administration, any proposed changes to our bank regulatory framework must be based on demonstrable benefits and needs, not pre-determined agendas which will only serve to harm the economy and consumers alike,” the senators concluded. “Accordingly, we urge you to withdraw the Basel III Endgame proposal as written and urge the Federal Reserve, the FDIC, and the OCC to operate in a more transparent and justified manner.”
Additional cosigners include U.S. Senators Tim Scott (R-SC), Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), John Kennedy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), JD Vance (R-OH), Katie Britt (R-AL), Steve Daines (R-MT), Chuck Grassley (R-IA), John Cornyn (R-TX), Mitch McConnell (R-KY), Lindsey Graham (R-SC), John Thune (R-SD), John Barrasso (R-WY), Roger Wicker (R-MS), James Risch (R-ID), Jerry Moran (R-KS), John Boozman (R-AR), Mike Lee (R-UT), Deb Fischer (R-NE), Shelley Moore Capito (R-WV), James Lankford (R-OK), Tom Cotton (R-AR), Joni Ernst (R-IA), Dan Sullivan (R-AK), Todd Young (R-IN), Cindy Hyde-Smith (R-MS), Marsha Blackburn (R-TN), Mitt Romney (R-UT), Mike Braun (R-IN), Roger Marshall (R-KS), Markwayne Mullin (R-OK), Tommy Tuberville (R-AL), Ted Budd (R-NC), Pete Ricketts (R-NE), and Eric Schmitt (R-MO).
Click here to read the letter.