MBA Agrees with Fed Chair Powell on the Need to Re-Propose Basel III Endgame

WASHINGTON, D.C. (July 9, 2024) — MBA’s President and CEO, Bob Broeksmit, CMB, issued the following statement regarding Federal Reserve Chairman Jay Powell’s comments on the Basel III Endgame Proposal before the Senate Banking Committee:  

“We agree wholeheartedly with Fed Chair Powell’s comments that it is ‘essential’ to re-propose the flawed Basel III Endgame proposal.  

“MBA has been very vocal in testimony before Congress, speeches, comment letters, and in ongoing conversations with regulators about how certain provisions of the proposal would harm the U.S. economy, diminish mortgage credit availability – especially for low- and moderate-income homebuyers – and have detrimental impacts to the broader single-family housing and commercial real estate finance markets.

“We call on the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to scrap this proposal and conduct a rigorous quantitative analysis – with ample time for stakeholder feedback – before the re-proposal of any new capital framework.”