DAINES PRESSES BIG BANK CEOS ON BIDEN'S ANTI-SMALL BUSINESS REGULATIONS

Press Release

"Earlier this year, we saw a series of bank failures, which were among the largest in our nation's history. These failures, in my opinion, were due to gross mismanagement by bank executives and regulators who were also asleep at the wheel. Instead of holding accountable those in supervisory positions responsible for missing the impending crisis, regulators have decided to put forth a host of regulations -- regulations that would have done nothing to prevent the failures in the first place.

In fact, every regulator I have questioned this year at hearings like this have confirmed what we all know to be true, and that is the U.S. bank system is strong, it's well capitalized. The proposals put forth by Vice Chair Barr and other regulators will limit economic growth, reduce lending to small businesses, and for those who are able to obtain financing, they're going to see increased costs.

You know, I have frequent meetings with my businesses across Montana. We are a state known for small businesses. I hear from them firsthand about the critical need for access to capital and the concern they have with pending regulations that could threaten their businesses. I questioned Vice Chair Barr before this very committee about risk weighting and public listing requirements in the Basel III Endgame proposal. Astonishingly, he claimed that small businesses would be better off under their proposed scheme than they are now despite the fact that less than one tenth of one percent of businesses are publicly listed and would qualify for the lower risk weighting.

Mr. Dimon, could you speak to how the Basel III Endgame proposal would impact your ability to lend critical funds to small businesses and what trickle-down effects we might expect if this were to be implemented?"

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