In this report, we assess today’s Senate Banking hearing with regulators on EGRRCPA implementation. Republicans led by Chairman Crapo (R-ID) pushed the banking agencies to quickly tailor rules not only for banks under the $250 billion threshold (see FSM Report SIFI27), but also banks above it. Progressive Democrats trained their fire on regulatory initiatives largely outside the new law’s purview, with Ranking Member Brown (D-OH) expressing strong opposition to any GSIB surcharge (see FSM Report GSIB7) recalibration that lowers capital levels. Sen. Menendez (D-NJ) tried to push FRB Vice Chairman for Supervision Quarles and FDIC Chair McWilliams to oppose provisions of the OCC’s CRA ANPR (see FSM Report CRA23) while Sen. Warren (D-MA) tried to have Ms. McWilliams condemn the FRB and OCC’s joint eSLR proposal (see FSM Report LEVERAGE13). Mr. Quarles stressed that he needs to review ANPR comments before proceeding while Ms. McWilliams said that she is still reviewing the eSLR proposal. Sen. Schatz (D-HI) used the hearing to take aim at Wells Fargo by arguing that the bank is too large to effectively supervise, suggesting that this should factor in assessments of antitrust actions.
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