-: Yet regulators are now using the events of the spring
to justify a host of changes
to the bank regulatory framework
that have little or nothing to do with the bank failures.
In particular,
they're calling for major capital increases at larger banks
despite the fact that regulators have consistently concluded
that our nation's banks are already well capitalized
and capital wasn't the issue at SVB.
In the process, they're trying to effectively undo
the bipartisan tailoring legislation
that Congress approved a few years ago.
That law requires regulators to sensibly tailor rules
based on a bank's profile and business model.
The new so-called Basel III Endgame rules
takes a one-size-fits-all approach
and fails to consider the economic consequences
of forcing banks to hold excessive capital in reserve.
There is a cost to too much capital,
and it's paid by both consumers
and businesses who need credit.
And ultimately, the proposal puts economic growth at risk.
It would be, in my view, a self-inflicted wound
at a time when our economy is already feeling the effects
of high interest rates,
and it just doesn't make sense.