U.S.: “He’s backing up” the Fed in imposing green rules on banks – Break with ECB

They abandon the attempt to impose global “green” rules on regulatory authorities in the US, with the Federal Reserve foreshadowing ( ), according to Bloomberg sources. Fed officials contradict their European counterparts, who argue that the Basel Banking Supervisory Committee should agree to the requirement that banks disclose their strategies to meet green commitments. In closed – door meetings, U.S. officials have invoked that the Kingdom Commission is beyond its purpose. The breach in the committee, which brings together representatives from regulators and central banks from all over the world to coordinate rules and supervision of banks, was particularly strong among some officials of the Fed and the European Central Bank, who was a keen supporter of the stricter climate requirements. The development coincides with the wider reaction in the US, which includes legal attacks led by Republicans against financial companies that account for environmental, social and management elements or ESG data in business and investment decisions. At the same time, Fed President Jerome Powell has made it clear in public comments that Fed should not be confused with a “climate policy-makers”. Michael Barr, vice president of the Fed for supervision appointed by the Biden government, has endured one of the fiercest pressure campaigns by Wall Street against a revision signing that would require the largest American banks to increase their funds by nearly 20%. Barr was nominated for his role after Sarah Bloom Ruskin, a former Fed commander and Deputy Finance Minister under the Obama administration, withdrew amid reactions to her efforts to bring climate change into the policy debate. Since July, Bar has been dealing with the implications of his proposal for the so-called Basel III Endgame rules. And after the severe reaction of the industry, Powell recently gave the message that the plan can now be drastically reduced. A consensus within the Basel Committee is often characterised by conflicts in national interests with the US having significant influence. The Fed must comply with US laws that traditionally define the risks to the banking system, while the commission’s mandate is to set international standards.

Exit mobile version