WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President and CEO, issued the following statement in connection with the House Financial Services Committee Chairman McHenry’s statement at a hearing this morning about Better Markets’ criticism of the Basel Committee’s flawed process related to capital requirements for Europe’s global systemically important banks (“GSIBs”).

“The Chair is right that the US should not let foreign governments dictate US policy and that the US must make its own determinations as to how best to protect its citizens, taxpayers, financial system and economy from undercapitalized banks, crashes, contagion, and bailouts. As we highlighted in May 2022, the Basel Committee should not have lowered capital requirements for European GSIBs and certainly not without public consultation.

“In stark contrast, the Fed did not do that. It has undertaken an open and transparent process that involves extensive public disclosure and input in deciding what is best for U.S.  in terms of capital requirements. Better Markets commented in January 2024 on these proposals and supported the need for more capital for the largest, most complex, and most dangerous megabanks to protect American families, Main street small businesses, and the entire economy from the need for future bailouts.

“As has been repeatedly demonstrated, including as recently as last March when the U.S. suffered three of the largest bank failures in history, systemically significant banks without enough capital pose a grave threat to every American as well as our financial system and economy. The banking industry’s propaganda campaign denying this reality is baseless and meritless if not outright false and misleading, as detailed here. The pending capital proposals sensibly seek to address that danger and they should be quickly adopted if not strengthened.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.