July 31, 2020

The New York Times: Democrats Decry Fed Push to Ease Capital Requirements for Big Banks

Senators Sherrod Brown and Elizabeth Warren criticized a Fed-backed effort to slip a change into the next coronavirus relief package

Two Senate Democrats sharply criticized the Federal Reserve’s effort to get Congress to help it weaken capital requirements for big banks this week, following a report in The New York Times that Republicans were hoping to include such a provision in the next coronavirus relief package.

In letters to Federal Reserve Chair Jerome H. Powell and Vice Chair Randal K. Quarles, Senators Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts, who sit on a committee that oversees banks and regulators, said the move would make the financial system less safe and help enrich bank chief executives without encouraging their institutions to lend more to Americans hit hard by the coronavirus pandemic.

Banks and Fed officials have said the change is needed to let banks handle the heavy influx of customer deposits owing to the crisis.

Read the full article on the New York Times website here

By:  Emily Flitter and Jeanna Smialek
Source: The New York Times