Echoing House colleagues who raised similar concerns earlier this week, five Republican senators on Thursday called on the Federal Reserve Board to rethink the central bank's capital surcharge for the biggest banks.
The senators — including Pat Toomey, R-Pa., who some speculate could chair the Senate Banking Committee in 2019 — said the Fed should adjust the surcharge for Globally Systemically Important Banks in order to eliminate “excessive” capital requirements.
They said the surcharge could hinder the U.S. financial system’s competitiveness.
They argued that the surcharge in its current form is unnecessary in light of post-crisis financial changes that they say “clearly reduce systemic risk.”
The letter comes three days after 29 House Republicans similarly raised the issue in their own letter to Randal Quarles, the Fed's vice chairman of supervision.
Read more in American Banker.