On November 13, a House Financial Services Committee member Rep. David Scott (D-GA) sent a letter to President Biden urging him to support the Fed’s recommendation to re-propose the Basel III endgame rules. Scott requested the President’s assistance in compelling the FDIC to proceed with a vote to begin negotiations.
The letter addressed the delays that have hindered negotiations between the Fed and FDIC, warning that further stalemate could jeopardize the completion of the final rule before the Trump Administration takes office in 2025. Rep. Scott called on President Biden to urge the FDIC board to set aside “partisan tactics” and move forward with the vote.
As part of his request, Scott highlighted the importance of striking the right balance between ensuring financial stability and economic growth, noting that excessively high capital requirements could increase funding costs for banks, which could ultimately burden households and businesses. He underscored concerns — brought by civil rights organizations, public pension funds, affordable housing advocates, and agricultural industries — about the potential negative impact of high capital rules on lending sectors, particularly for underserved and minority communities.
