WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy at Better Markets, issued the following statement in connection with today’s filing of a comment letter to the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, “the Banking Agencies”) on proposed changes to the enhanced supplementary leverage ratio (“eSLR”).  

“Strong capital requirements are foundational to protecting every American’s money, livelihood, and financial future. The Banking Agencies want to reduce the eSLR, which will directly undermine and weaken that protection for the largest and most complex banks – the ones that have the largest impact on our financial system.  

“To make matters worse, these proposed changes to the eSLR are happening alongside many other deregulatory actions, such as weakening bank stress tests and undermining large bank supervision. This scale of deregulation leaves Americans vulnerable to financial crashes, bank failures, and bailouts. 

“This proposal also disadvantages community banks, the lifeblood of Main Street, because the proposed changes only apply to the 8 U.S. GSIBs and their bank subsidiaries.  

“While capital requirements do need to be recalibrated, they need to be strengthened, not weakened. The Agencies’ proposal is dangerous, wrong, and should be withdrawn.” 

The Comment Letter is available here.  

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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.