The letter from 29 Republicans, including some who may chair the House Financial Services Committee next year, urges the Federal Reserve’s top regulator to ‘recalibrate’ the capital surcharge for banks like JPMorgan Chase and Citigroup.
The Fed's top regulatory official suggested that some banks could get a break from filing resolution plans and see the frequency of their stress tests reduced.
The central bank has encountered criticism for allowing three banks to direct funds to dividends and buybacks even though their capital levels fell below required minimums.
The chairman of the Federal Reserve is testifying before Congress this week, where he will likely face tough questions about the agency’s decision to let two banks slide on their exams late last month.
The central bank's rule-writing workload is expected to remain busy for the foreseeable future, thanks in large part to enactment of the recent regulatory relief bill.
The rule hews closely to a 2016 proposal but the central bank made a notable change to reflect a higher threshold for banks considered "systemically important."
Federal Reserve Chairman Jerome Powell said the agency has its hand full between proposals on liquidity and capital requirements and additional mandates made by the recently enacted regulatory relief law.
