Financial Services Forum

Tune in! Forum President and CEO Kevin Fromer speaks on the “Macrocast” podcast by Forbes Tate Partners and Markets Policy Partners to preview the upcoming Fed Chair Powell hearings. “So, I think some of the specific parts of the capital framework are issues that we hope Members of Congress will speak to next week with Chair Powell. And then in that broader context, having some assurance that the system is operating the way he thinks it should. For quite some time he has referred to the banking system, and the capital in the banking system, as about right,” said Fromer. ??Listen to the full interview:?https://zurl.co/Segno

The Forum congratulates Michelle Bowman on her nomination to serve as the Federal Reserve Board's Vice Chair for Supervision. "Banking regulation and supervision play critical roles in ensuring a safe and sound financial system," said Forum President and CEO Kevin Fromer. We look forward to working with the next Vice Chair for Supervision to implement sound regulation and effective supervision that promotes economic growth. https://zurl.co/D0Rxs

The Forum appreciates the Senate Banking Committee's action to advance common sense legislation to provide greater clarity and create a more stable regulatory environment.?"The FIRM Act is an important first step to ensure bank supervision is rooted in objective measures of financial and material risk," said Forum CEO and President Kevin Fromer. Read more: https://zurl.co/E1arf

The supplementary leverage ratio imposes significant costs on the U.S. Treasury market and the broader economy. In our latest BankNotes Blog, Forum Chief Economist Sean Campbell discusses the urgent need for leverage ratio reform. “Any increase in U.S. Treasury yields or other strains will immediately spill over into the market for home mortgages, auto loans, business loans, and essentially any other financial product used by households and businesses,” said Dr. Campbell. Learn more: https://zurl.co/vXJ2X

Forum CEO Kevin Fromer issued a statement today in response to the removal of guidance by the Office of the Comptroller of the Currency on crypto-related bank activities. “Rescinding this guidance contributes to a regulatory environment that empowers U.S. banks to innovate and collaborate with emerging technologies, ensuring they meet customer needs safely and soundly," said Fromer. Read the full statement: https://lnkd.in/e9DJvUgv

ICYMI: Treasury Secretary Scott Bessent calls for a review of leverage capital requirements harming U.S. Treasury markets and raising costs across the economy. Forum President and CEO Kevin Fromer emphasized that leverage capital requirements?are limiting U.S. banks' ability to support government borrowing, harming market liquidity, and increasing national debt costs. "We greatly appreciate the Secretary’s attention to this issue and look forward to quick action," said Fromer. Read more: https://zurl.co/0vHYo

Forum President and CEO Kevin Fromer commends Senate Banking Republicans, led by Senator Tim Scott, for introducing legislation to remove reputational risk as a measure used by federal banking agencies to supervise financial institutions. "This bill would provide needed clarity for a more predictable regulatory environment so that banks can best serve their customers in a safe and sound financial system," said Fromer. Read the full statement: https://zurl.co/iLbkG

Forum members are a leading source of credit to American companies. In our latest BankNotes Blog, Forum Chief Economist Sean Campbell and Research Associate Emma Tong highlight how Forum members' lending activities support U.S. economic growth and competitiveness. "The roughly $4.8 trillion in direct lending from Forum members is a critical source of funds to drive investment and economic growth," wrote the Forum Policy Research team. Read more: https://zurl.co/khJLW

The Forum joined the Bank Policy Institute, American Bankers Association, Association of Global Custodians, SIFMA, and The Clearing House in a letter supporting the President's Working Group on Digital Asset Markets. We proposed recommendations to bolster U.S. leadership in digital assets by removing obstacles to bank engagement with digital asset activities. “We strongly support the President’s goals for the PWG, and we stand ready to assist you as you proceed with the work plan outlined by the President in his January 23rd Executive Order,” the Associations wrote. Read more: https://zurl.co/8586f

In our latest BankNotes Blog, Forum President and CEO Kevin Fromer highlights the importance of bank supervision reform to ensure it is focused, efficient, and supports stability and growth. The blog details four changes that must be vigorously pursued to bring supervision back to its core mission: focus on material risks, respect the boundary between supervision and regulation, provide for effective challenge, and improve efficiency in supervision. "Given the critical importance of the banking system to our nation’s shared prosperity and growth, we need to get back to a rigorous but sensible approach to bank supervision and we must not wait," said Fromer. Read more: https://zurl.co/VL9t8