Warren Says Big Banks Shouldn’t Get Capital-Relief Extension
- Extension would be ‘grave error,’ Warren and Ohio’s Brown say
- Banks have lobbied for relief to last beyond March 31
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Senators Elizabeth Warren and Sherrod Brown urged U.S. regulators to reject lenders’ appeals to extend an easing of capital requirements that has allowed banks including JPMorgan Chase & Co. and Citigroup Inc. to stretch themselves another $1 trillion during the pandemic.
The Democrats contend the industry appears to be taking advantage of the coronavirus crisis to “weaken one of the most important post-crisis regulatory reforms,” they wrote in a joint letter to the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency. Warren of Massachusetts and Ohio’s Brown, who took over the Senate Banking Committee this year, said granting the extension would be a “grave error.”