A group of 29 Republicans on the House Financial Services Committee—including some who could chair the panel next year—have signed a letter asking the Federal Reserve to “recalibrate” a capital surcharge for the biggest and most systemically significant banks.
The July 27 letter, obtained by American Banker, implored Federal Reserve Vice Chairman for Supervision Randal Quarles to reconsider the Fed’s capital surcharge for global systemically important banks, or G-SIBs. The lawmakers argued that the surcharge goes beyond the international minimum requirements and is no longer necessary in light of other post-crisis regulatory changes.
“We are concerned that the surcharge has become duplicative of other post-crisis regulations,” the letter said. “As a result, there is great concern that the surcharge calculation, as currently constructed, is putting unwarranted capital burdens on U.S. banks.
A Fed spokesman said that the agency has “received the letter and plan[s] to respond.”
Read more in American Banker.