FIRST ON FOX: A top executive at JPMorganChase warned that proposed federal bank capital rules could damage small businesses across the country, airing caution that Main Street may have less access to credit from banks.As regulators move to finalize Basel III Endgame, one of the most important global financial regulatory standards to date, Chase Business Bank CEO Stevie Baron said in a memo obtained by Fox News Digital that the current framework could potentially have unintended consequences for small businesses as capital requirements could prevent lending."The latest revisions to the 2023 proposal are a step in the right direction, but as we reiterated to regulators, more work is needed to ensure the final rules do not increase the cost of lending or reduce access to credit for small businesses," Baron explained.A top JPMorganChase exec warned that proposed regulatory framework that would affect America's biggest banks could prevent loans to small businesses.(Michael Nagle/Bloomberg via Getty Images)Baron specifically noted proposed changes to the Global Systemically Important Bank (GSIB) surcharge, saying that formula could encourage trading over lending, raising borrowing costs for millions of small business owners.JAMIE DIMON SAYS HE WOULDN’T BUY STOCKS OR TREASURYS AT CURRENT PRICESJPMorganChase is considered a GSIB, and is required to adhere to higher loss-absorbing equity and capital requirements than other smaller banks."The Fed should reconsider the proposed changes to the GSIB surcharge calculation, and, in particular, retain the current approach to the short-term wholesale funding factor that accounts for the size and funding diversification benefits of universal banks," Baron added.
"Regulators should ensure the surcharge framework does not penalize the everyday lending and banking services relied on by small businesses."He also argued that "capital requirements should not increase just because the economy is growing, or routine activity is expanding...