Under the Dodd-Frank Act’s systemic risk regulatory regime, some of the largest institutions may decide it is in their best interests to shrink, Federal Reserve Governor Lael Brainard said at an industry event today.
The chairman and CEO of the smallest bank holding company to be designated as a systemically important financial institution yesterday outlined to the House Financial Services Committee the burdens this level of regulation has imposed — burdens he finds out of proportion to the benefits they provide.
Building on its partnership with the state bankers associations, ABA is urging bankers to ask their representatives to co-sponsor the TAILOR Act, H.R. 2896, which would direct financial regulators to tailor regulatory actions based on the sizes, business models, risk profiles and other differentiating characteristics of the institutions they supervise.
Testifying before the Senate Judiciary Committee today, ABA SVP Doug Johnson called on Congress to act swiftly to enhance the penalties faced by cyber criminals.
Four senators yesterday re-introduced what they called the “21st Century Glass-Steagall Act,” a bill that would reintroduce barriers between commercial and investment banking.
ABA yesterday wrote to Rep. Scott Tipton (R-Colo.) to thank him for introducing the TAILOR Act, H.R. 2896, which would direct financial regulators to tailor regulatory actions based on the sizes, business models, risk profiles and other differentiating characteristics of the institutions they supervise.
ABA and the state bankers associations yesterday wrote to the federal banking regulators, continuing their pursuit of relief from the complex Basel III capital calculations for banks that are already clearly highly capitalized.
ABA SVP Doug Johnson will testify tomorrow before a Senate Judiciary subcommittee hearing on cyber crime and the legal framework for information security. The Senate Banking Committee will meet tomorrow to discuss the role of the Basel, Switzerland-based Financial Stability Board in U.S. bank regulation.
Meanwhile, the House Financial Services Committee will hold several bank-related hearings this week. Tomorrow, the panel will discuss the designation and regulation of systemically important bank holding companies; former ABA Chairman Harris Simmons, chairman and CEO of Zions Bancorporation in Salt Lake City, will testify.
On Thursday, the House panel will also hold a five-year retrospective on Dodd-Frank. The House Judiciary Committee will meet on Thursday to examine financial institution bankruptcy.
Noting that many lenders turn to the U.S. Export-Import Bank to add balance sheet capacity and meet their customers’ needs, ABA’s global finance subsidiary BAFT today expressed its disappointment in Congress’ failure to reauthorize the Export-Import Bank before its charter expired last night.