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FDIC’s Gruenberg Blasts Plan to Ease Megabank Capital Standards

Sept. 07, 2018 — A regulatory proposal to ease capital requirements on the largest bank holding companies would significantly weaken systemic protections and make these institutions more vulnerable, FDIC board member and former chairman Martin Gruenberg said.

Speaking in Washington on a Federal Reserve Board and OCC proposal to roll back capital standards on global systemically important bank holding companies, Gruenberg said it would significantly reduce the capital of these institutions to serve the interests of their parent companies.

ICBA has repeatedly expressed opposition to reducing capital levels required by the enhanced supplementary leverage ratio standards that were introduced in 2013, including in a June comment letter and August op-ed in American Banker.

“As policymakers continue reviewing financial services regulations, they should not be tempted by a renewed campaign from the largest and riskiest institutions to weaken vital safeguards on our financial system,” ICBA President and CEO Rebeca Romero Rainey wrote in the op-ed.



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