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Senate Banking Republicans warn Fed not to go too far in capital review

March 3, 2023

Republicans on the Senate Banking Committee are keeping a watchful eye on the Federal Reserve’s ongoing review of bank capital requirements.

Sen. Tim Scott, R-S.C., the ranking member on the committee, sent a letter to Fed Chair Jerome Powell on Friday afternoon, urging him to make sure any changes to capital requirements are tailored to each bank’s specific activities, risks and complexities.

Should the review fail to adequately tailor capital requirements, the letter warns, the Fed’s actions could have a “chilling effect on market making activities and availability of financial services.”

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