Regional bank execs urge Senate to raise SIFI limit

WASHINGTON — Top executives at nineteen regional banks sent a letter to the leaders of the Senate Banking Committee on Monday endorsing a bill that would replace the $50 billion asset threshold for a bank to be considered systemtically important with an indicator test that involves a bank's business model instead of just its size.

“We believe that dynamic, multifactored analyses provide the most accurate basis for making assessments for regulatory purposes and should be used accordingly,” said the letter, which was addressed to Sens. Mike Crapo, R-Idaho, and Sherrod Brown, D-Ohio.

Crapo and Brown have been working on a deal that would include a package of bills aimed at increasing economic growth and providing regulatory relief. It is not clear that a bill addressing the SIFI threshold will be included.

Sen. Mike Crapo, R-Idaho (left) and Sen. Sherrod Brown, D-Ohio
Senator Mike Crapo, a Republican from Idaho and chairman of the Senate Banking Committee, left, speaks with ranking member Senator Sherrod Brown, a Democrat from Ohio, during a nomination hearing with Randal Quarles, governor of the U.S. Federal Reserve nominee for U.S. President Donald Trump, not pictured, in Washington, D.C., U.S., on Thursday, July 27, 2017. Trumps pick to be the Federal Reserves top Wall Street watchdog said it's time to reconsider the restrictions imposed on banks in recent years, even as he credited regulations with helping stabilize the financial system after the 2008 crisis. Photographer: Andrew Harrer/Bloomberg

Sens. David Perdue, R-Ga., and Susan McCaskill, D-Mo., recently introduced the “The Systemic Risk Designation Improvement Act of 2017,” which the bankers endorsed in their letter. The bill would use an indicator test that focuses on measures including size, interconnectedness, cross-border activities and complexity.

A similar bill sponsored by Rep. Blaine Luetkemeyer, R-Mo., passed out of the House Financial Services Committee with the support of 13 Democrats and 34 Republicans.

Signing the letter were the CEOs at Ally Financial Inc., Bank of the West, BB&T, BBVA Compass, BMO Financial Corp, Capital One Financial Corporation, Citizens Financial Group, Comerica, Discover Financial Services, Fifth Third Bancorp, Huntington, KeyBank N.A, M&T Bank, The PNC Financial Services Group, Inc., Regions Financial Corporation, Santander US, SunTrust, US Bank, Zions Bancorporation.

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SIFIs Dodd-Frank Regulatory relief Regulatory reform Mike Crapo Sherrod Brown
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