U.S. Sen. David Vitter (R-La.), who earlier this week urged Federal Reserve Chairman Ben Bernanke to increase the capital requirements of megabanks, today applauded the Fed's decision to extend the comment period on proposed capital rules.
"This delay is an important step for the Fed to take in order to get their rulemaking right. I applaud Chairman Bernanke for extending the comment period, and I'm hopeful this means he's considering our recommendations to place significantly higher capital requirements on megabanks," said Vitter. "A higher capital surcharge for the megabanks can help correct the too-big-to-fail epidemic. And it'll ensure that the megabanks bear their own risks so taxpayers aren't hung out to dry with another Wall Street bailout."
Earlier this week Sens. Vitter and Sherrod Brown (D-Ohio) sent a bipartisan letter urging Federal Reserve Chairman Ben Bernanke to increase the capital requirements of megabanks. A copy of their letter, in which they asked Bernanke to delay and reconsider this rulemaking, is available here.
Last week Vitter introduced The Terminating the Expansion of Too-Big-To-Fail Act which would remove the authority for the government to designate non-bank financial institutions as "systemically important financial institutions" as contained in Title 1 of the Dodd-Frank Act.
Vitter was one of only 25 senators to vote against the Troubled Asset Relief Program in 2008.