WASHINGTON, D.C – Today, U.S. Senator Cynthia Lummis (R-WY) and eight of her colleagues sent a letter to U.S. Treasury Secretary Janet Yellen imploring the Biden administration to comply with Section 123 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 123 requires the Financial Stability Oversight Council (FSOC) to submit a report to Congress every five years on the economic impact of financial services regulatory changes, including rules, guidance and other agency actions, intended to reduce systemic risk. The FSOC is three years past due on its obligation at a time when the Biden administration is pushing a unprecedented number of complex and interconnected rules. The senators demanded answers about how costly the Biden administration’s regulatory agenda in financial services is as people in Wyoming and across the country struggle with the record cost of living.
“The report must estimate the costs and benefits of such regulations on the efficiency of capital markets, the financial sector and economic growth and include recommendations on how to minimize said economic impact,” said the senators. “FSOC delivered its first report on this topic to Congress in 2011 and produced its most recent report in March of 2016. Currently, FSOC is three years late in delivering its subsequent iteration of the report, having missed its 2021 deadline.”
Senator Lummis was joined by U.S. Senators Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), Bill Hagerty (R-TN), JD Vance (R-OH), Katie Britt (R-AL), Kevin Cramer (R-ND) and Steve Daines (R-MT).
- The letter comes as the Biden administration considers implementing Basel III Endgame which would, as proposed, raise capital requirements for financial institutions with more than $100 billion in assets.
- The regulations would lead to significantly higher borrowing costs for individuals, families and small businesses in Wyoming without clear evidence it would strengthen the security of America’s financial institutions.
- The increased costs come as families across Wyoming are already paying an extra $12,986 a year as a result of inflation.
- The Biden administration announced $1 billion worth of new regulations at the start of 2024.
Click here to read the letter.