News

For Immediate Release
February 5, 2023

Contact: press@center-forward.org

Washington, D.C. –

As the Federal Reserve considers “Basel III Endgame,” a proposed rule that could have sweeping impacts to the financial markets and increase costs of everyday goods while reducing credit availability, hundreds of stakeholders and policymakers have voiced their concerns. These groups are calling on the Fed to make significant changes to the rulemaking given the harm it could cause hard-working Americans and businesses of all sizes.

The “Protect our Economy” project has been looking at the various components of the financial system and the potential pitfalls of stalling economic growth. According to commenters of the “Basel III Endgame” proposal, there is mounting concern that the rule will make financing more expensive and raise costs for business, consumers and everyday goods, reduce access to credit and funding through the financial markets, and ultimately harm the U.S. economy’s recovery.

These concerns are shared with significant breadth and depth. In a recent Latham & Watkins insights report, 97 percent of the 356 comment letters submitted raised substantial concerns with the entire rulemaking or critical parts of it. Only 9 letters (2 percent of letters reviewed by Latham) supported the proposal, including mostly academics and think tanks and a small handful of policymakers.

Stakeholders concerned with the proposal’s impacts include more than 200 members of Congress across both sides of the aisle and a wide range of industries beyond the financial services sector, including manufacturing firms and energy providers, as well as companies of all sizes and their customers, pension funds and retirement savers, local governments and farmers.

Center Forward’s “Protect our Economy” campaign has documented these stakeholder comments to educate the American people about the real risks this rule could have on their everyday lives, businesses and ability to plan for their future.

To read more about “Protect our Economy,” visit www.protectoureconomy.org

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