Bachus, Maloney Introduce Basel Bill to Protect U.S. Banks

WASHINGTON-House Financial Institutions and Consumer Credit Subcommittee Chairman Spencer Bachus (R-Ala.) and Subcommittee on Domestic and International Monetary Policy Ranking Member Carolyn Maloney (D-N.Y.) introduced legislation to ensure that U.S. financial services firms are not competitively disadvantaged by changes to the Basel Accord. "Proposed changes to the Basel Accord could raise costs and create competitive disadvantages for many U.S. financial institutions. Congress must maintain its oversight responsibility on this important matter and ensure that a greater level of transparency is applied to the Basel negotiations," Rep. Bachus said. "Ultimately, any changes to the Basel Accord must benefit U.S. consumers, industry, and our economy as a whole." The United States Financial Policy Committee for Fair Capital Standards Act would establish a Financial Policy Committee to unify the United States' position and report to Congress on the domestic and global impact of the Basel Accord changes. House Financial Services Committee Chairman Mike Oxley (R-Ohio) and Ranking Member Barney Frank (D-Mass) are cosponsoring the bill. "It is clear that a new Basel Accord is needed, however I am concerned that as drafted the current proposal is overly burdensome for many U.S. financial institutions," Oxley said. "Changes to the Basel Accord will have a dramatic impact on financial institutions around the globe."