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BANK CEOs have joined together to speak on new regulations, and are expected to advocate against them, during a congressional hearing.
Top bosses of the top eight banks in the United States are expected to speak to the Senate Banking Committee on Wednesday.
The following executives are meant to appear and speak:
Among topics such as pay and rights, climate change, mortgages, and financial stability, analysts expect these banking CEOs to address how the Basel Endgame Proposal and other new regulations will impact customers.
The proposal overhauls how banks must calculate their loss-absorbing capital, which ensures that banks can properly recover during a financial crisis.
Banks are required to invest a certain amount of capital, money, into protecting credit, operational and market riskiness; this proposal would increase the amount banks have to invest towards these causes.
Kevin Fromer, president of the Financial Services Forum, which represents the CEOs has spoken out expecting this emphasis on the Basel Endgame Approach.
“The hearing this week gives the CEOs an opportunity to discuss the important work of their firms in supporting their customers, the economy, and financial stability,” he said.
It is expected that the bank CEOs will vie for retaining old regulations rather than adopting the new proposal.
Committee Democratic chair Sherrod Brown will likely be a difficult lawmaker to convince along with many other democratic members as three financial institutions collapsed this year.
“My commitment as chair of this committee is to always put the Main Street economy – and the workers who power it – at the center of everything we do,” Brown said in a statement.
“It’s our job to hold them accountable to their workers, to their customers, and to the American people.”
Some Republicans and moderate Democrats on the committee have expressed fears about the impact new regulations might have on customers.
The bank CEOs are predicted to speak on how these new regulations, including some outside of the Basal Endgame Proposal, might result in forcing banks to pull back from lending.
If lending was reduced, independent citizens and small businesses would be the hardest hit.
Tim Scott, the Committee’s top Republican, said he planned to focus on Basel and “burdensome” regulatory proposals.
“I look forward to hearing directly from the businesses that will be impacted, and in turn, how these proposals will increase costs and limit access to credit for the Americans who need it most,” he explained.