April 03, 2020

Brown Statement On The Fed’s Decision to Relax Leverage Ratio Requirements

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 today following news that the Federal Reserve intends to further relax leverage ratio requirements:

“The leverage ratio was put in place because regulators proved time and time again they were bad at estimating banks’ risks, and leverage ratios don’t require making complicated predictions. Right now as we deal with the economic fallout of Coronavirus it is vital that financial watchdogs prioritize our economy’s recovery instead of weakening important economic protections,” said Senator Brown.