SIFMA Criticizes Federal Reserve Capital Surcharge Rule

SIFMA President and CEO Kenneth E. Bentsen criticized the Federal Reserve "capital surcharge rule" for systematically important banks. He stated that the final rule constricts "the ability of financial institutions to lend, facilitate capital formation and drive economic growth."

Mr. Bentsen also noted that although SIFMA appreciates the Federal Reserve's changes to the rule, which are intended to improve its calculation methodology, "questions remain regarding the fundamental analysis that underpins the rule."

Mr. Bentsen argued that "the final rule does not appropriately recognize the tremendous amount of change that has already occurred at financial institutions to meaningfully reduce systemic risk."

See: Mr. Bentsen's Remarks on the Capital Surcharge Rule.Related news: FRB Approves Final Rule on GSIB Capital Surcharges (July 20, 2015).