Brown Statement on Federal Reserve's Vote Against Big Bank Safeguards
WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released the following statement on The Federal Reserve’s decision to keep the countercyclical capital buffer at its current level of zero. The countercyclical capital buffer requires big banks to set aside extra capital to absorb potential loan losses in the event of an economic downturn.
“I’m disappointed with the Fed’s decision to not raise the countercyclical capital buffer, especially considering that Federal Reserve Bank presidents, Governor Brainard, and others believe it should be used,” said Brown. “Banks are doing well, but there are certainly growing risks in the economy. Now is exactly when the buffer should be used to make sure that the banks have enough capital for those eventual bad times.”
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