Regulators Under Fire: Bank Capital Rules Face Intense Scrutiny
Regulators, including Federal Reserve Vice Chair of Supervision Michael Barr, FDIC Chair Martin Gruenberg, and acting OCC Comptroller Michael Hsu, are set to testify before Congress this week about proposed tougher capital requirements for big banks. Republican members are expected to question the regulators, arguing that increased capital buffers would hinder lending and harm the economy. The pushback against the proposal has included a letter from Senate Banking Committee Ranking Member Tim Scott and lobbying efforts by banks and industry groups. The regulators have acknowledged criticisms and extended the period for public comment. The clash in Washington follows months of campaigning by banks and lobbyists to stop or influence the final version of the rules.