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TLDR: Senator John Kennedy of Louisiana, along with Senator Tim Scott and other Senate Banking Republicans, is urging regulators to abandon the Basel III Endgame Proposal, which would increase bank capital requirements. They argue that the proposal would have negative impacts on affordable housing, mortgage lending, small business lending, and consumer lending. The senators also express concerns about the availability of credit cards and home equity lines of credit, as well as the competitiveness of US companies compared to foreign competitors. They criticize the lack of economic analysis and proof of undercapitalization in the banking system, and highlight testimonies from CEOs and minority communities that suggest detrimental effects. The senators question how legislators and the public can make informed decisions about a proposal whose authors do not fully comprehend its effects.
Background: The Basel III Endgame Proposal aims to revise bank capital requirements based on international standards established in response to the financial crisis. The proposal would apply to banks with over $100 billion in assets, impacting the largest banks in the US and changing their lending and trading practices. In addition to Kennedy and Scott, Senators Mike Crapo, Mike Rounds, Thom Tillis, Bill Hagerty, Cynthia Lummis, J.D. Vance, Katie Britt, Kevin Cramer, and Steve Daines also signed the letter urging regulators to withdraw the proposal.
In this article, Senator John Kennedy and his fellow Senate Banking Republicans are renewing their push for regulators to abandon the Basel III Endgame Proposal, which would increase bank capital requirements. They argue that the proposal would have negative impacts on affordable housing, mortgage lending, small business lending, and consumer lending. They also express concerns about limited access to credit cards and home equity lines of credit, as well as the competitiveness of US companies compared to foreign competitors. The senators believe that the regulators have not provided sufficient economic analysis or evidence of undercapitalization in the banking system to justify the proposal. They highlight testimonies from CEOs and minority communities that suggest detrimental effects. The senators question the ability of legislators and the public to make informed decisions about a proposal whose authors do not fully comprehend its effects. The Basel III Endgame Proposal aims to revise bank capital requirements based on international standards established in response to the financial crisis. It would apply to banks with over $100 billion in assets, impacting the largest banks in the US and changing their lending and trading practices. Senators Mike Crapo, Mike Rounds, Thom Tillis, Bill Hagerty, Cynthia Lummis, J.D. Vance, Katie Britt, Kevin Cramer, and Steve Daines also signed the letter urging regulators to withdraw the proposal.
