Bank CEOs to Testify Before Senate Committee

The banking committee chair believes updated regulations are necessary.

The CEOs of America’s largest banks are scheduled to testify before the Senate Banking Committee on Wednesday, prepared to offer their perspective on the regulation proposal known as “Basel Endgame.” The leaders of JPMorgan, Bank of America, Citi Bank, Wells Fargo, Goldman Sachs, Morgan Stanley, State Street, and BNY Mellon are expected to attempt to dissuade the committee from imposing the standards.

The international banking supervision panel based in Basel, Switzerland, proposed its final updates to regulations for banks worth $100 billion or more in 2017, giving banking regulators time to implement its universal standards in each country. These “Basel Endgame” updates guardrails that were first implemented during the 2008 global financial crisis, requiring large banks to use more cautious risk assessment models to calculate lending decisions and potential swings in the market.

U.S. regulators are preparing to finalize their version of these updates, proposing similarly cautious requirements for the risk assessment models of larger banks. Though these updated standards have been in development for some time, it was not expected that the Senate Banking Committee would adhere so closely to the initial “Basel Endgame” plans.

While U.S. banks have proven their current risk assessment models are suitably risk averse, pointing to their stability during the COVID-19 pandemic. However, the sudden collapse of Silicon Valley Bank earlier this year has led the committee’s chairman Senator Sherrod Brown of Ohio to believe that these updated regulations are necessary.

As the Lord Leads, Pray with Us…

  • For committee members as they hear testimony from the bank CEOs.
  • For Chair Brown to be led by God as he heads the Senate Banking Committee.

Sources: Reuters, CNBC


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