KONTAN.CO.ID - WASHINGTON. U.S. bank groups on Tuesday accused the Federal Reserve and other regulators of violating federal laws with a sweeping proposal to raise capital requirements, escalating an assault on the draft rules which bankers say will hurt the economy. In a public letter to the agencies, the groups representing JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup, among other lenders, said the proposal unveiled in July violates the Administrative Procedure Act (APA) because it lacked sufficient public data and analysis. The APA sets certain requirements for agencies when proposing new rules, including economic analysis. The groups argued that banks cannot properly respond to the proposal, which would require lenders to hold more cash to absorb losses, without that analysis. They said the agencies should freeze all work on the rules until they are properly re-proposed.
US Banks Say Regulators Broke Law as Fight Over Proposed Capital Rules Escalates
KONTAN.CO.ID - WASHINGTON. U.S. bank groups on Tuesday accused the Federal Reserve and other regulators of violating federal laws with a sweeping proposal to raise capital requirements, escalating an assault on the draft rules which bankers say will hurt the economy. In a public letter to the agencies, the groups representing JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup, among other lenders, said the proposal unveiled in July violates the Administrative Procedure Act (APA) because it lacked sufficient public data and analysis. The APA sets certain requirements for agencies when proposing new rules, including economic analysis. The groups argued that banks cannot properly respond to the proposal, which would require lenders to hold more cash to absorb losses, without that analysis. They said the agencies should freeze all work on the rules until they are properly re-proposed.