July 29, 2020

Sens. Warren, Schatz Call on Fed to Suspend Bank Dividends and Increase Transparency

In letter, Senate Banking Committee Democrats voice concerns over efforts to alter bank capital rules

Sens. Elizabeth Warren (D-Mass.) and Brian Schatz (D-Hawaii) are urging Federal Reserve officials to suspend bank dividends and to provide more transparency on the way the Fed measures the ability of banks to weather a crisis, according to a letter provided exclusively to Morning Consult. 


Warren and Schatz, both on the Senate Banking Committee, said in a letter sent Tuesday night to Fed Chair Jerome Powell and Fed Vice Chairman for Supervision Randal Quarles that their concerns are “especially disturbing” after a report that Senate Banking Committee Chairman Mike Crapo (R-Idaho) is working on legislation that would allow bank regulators to exclude certain items on their balance sheet when figuring out capital requirements, effectively allowing banks to take on more risky assets.


The legislation did not make it into the latest Senate Republican coronavirus stimulus package, but it could still be included in later negotiations and inserted into the final bill, according to two people familiar with the matter. 


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Read the full article on the Morning Consult website here. 




By:  Claire Williams
Source: Morning Consult