House Financial Services Chair Threatens Congressional Review Act Vote on Basel III
At a House Financial Services Committee hearing on Monetary Policy, Chair Patrick McHenry argued that "broad and material changes to the Basel III Endgame necessitate a full re-proposal. Full stop."
Mr. McHenry said that failure to initiate a full re-proposal "will result in an immediate Congressional Review Act vote."
He asserted that "the development of the Basel III Endgame proposal has been a mess," and criticized the "opaque standards and timelines set at meetings of unaccountable global governance bodies." Mr. McHenry acknowledged Federal Reserve Board Chair Jerome Powell's recent commitment to conduct a quantitative impact study and Mr. Powell's recent testimony before the Senate that the Fed supports reissuing an updated proposal, but raised concern about adequate time for comment on any proposed changes and for review of the study.
Related Articles
-
The Global Markets Advisory Committee approved (i) a report with recommendations examining the "harmful impact" of the Basel III proposals on the derivatives markets; and (ii) recommendations to "support and facilitate industry implementation of the BCBS-IOSCO [framework] for streamlining of variation margin practices."
-
In remarks at AgCon 2024, CFTC Chair Rostin Behnam emphasized the need for prudential regulators to move forward with the Basel III Endgame and G-Sib Surcharge, but to "be mindful about how it is implemented. ... and preserve incentives for clearing and ensure that market participants are not cost prohibited from pursuing effective risk management."
-
CFTC Commissioner Summer K. Mersinger asserted that the Basel III Endgame Proposal, if adopted, would have a significant negative impact on derivatives markets.
-
Republican members of the House Financial Services Committee urged banking regulators to withdraw their Basel III Endgame proposal. The legislators argued that, as issued, the proposal "lacks justification, lacks rigorous quantitative analysis, and is procedurally flawed."