Rumors: Basel Endgame Re-Proposal Imminent
September 10, 2024
Federal banking regulators are expected to release a significantly revised re-proposal of the Basel Endgame Capital Rules in the near term.
Michael Barr, the Fed Vice Chair of Supervision leading the Basel effort, will be speaking today at 10 a.m. ET at Brookings where he “will preview the regulators’ revised proposal and explain the next steps.”
- It is rare for regulators to provide substantive policy detail on an active rulemaking unless it accompanies some sort of public release. Barr’s appearance could mark the debut of the re-proposal.
What they’re saying: While Fed Chair Jerome Powell has publicly testified he expects broad and material changes to the original proposal, the rumors have intensified in the past week of an imminent re-proposal.
- Both Democratic and Republican lawmakers have been highly critical of many provisions in the proposal.
- Some policy analysts speculate that the revised proposal could provide more relief to the largest banks although the impact on >$100 billion regional banks remains difficult to predict.
What’s next: CREFC will closely analyze any new re-proposal, reviewing it against comments CREFC submitted in January 2024.
Contact Sairah Burki (sburki@crefc.org) with questions.