Securitization Addressed in HFSC Prudential Regulators Oversight Hearing

On December 2, the House Financial Services Committee held a hearing, entitled “Oversight of the Prudential Regulators”, with 18 Republicans and 16 Democrats attending. There was notable interest in the Federal Reserve Vice Chair for Supervision Michelle Bowman’s approach to the Basel III capital proposal. Representatives Anne Wagner (R-MO) and Andrew Garbarino (R-NY) stressed concerns over the proposal’s treatment of securitized assets and changes made to the p-factor. Vice Chair Bowman responded that the joint financial regulators are taking another look at Basel III. 

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