Senator Kennedy Questions Banking Nominees on Basel III, IMF, and Special Drawing Rights

Basel III Endgame Concerns

• 🎯 Senator Kennedy questions Governor Bowman on the objective and necessity of the Basel III endgame, an international agreement for financial regulation.
• 💡 Bowman explains its goal is to ensure parity and a level playing field across jurisdictions, though it may call for more regulation of American banks.
• ❓ Kennedy expresses skepticism, suggesting Washington has a tendency to over-regulate or break things that aren't broken, and asks what specific problem the Basel III endgame is intended to solve.
• 🗣️ He notes that his predecessor, Mr. Barr, embraced Basel III but never clearly articulated the problem it addresses.

International Monetary Fund (IMF) and Special Drawing Rights (SDRs)

• 🧐 Mr. Fogle, nominated for Global Markets at Commerce, states that the IMF is outside his direct purview, which Kennedy interprets as an artful dodge.
• 🏦 Mr. Hurley, nominated for Terrorism and Financial Crimes, confirms familiarity with the IMF and its role in lending money to other countries.
• 🇺🇸 The US is identified as the primary financial contributor to the IMF, which comprises about 190 countries.
• 📄 Kennedy explains Special Drawing Rights (SDRs) as a dividend declared by the IMF that allows countries to redeem them for other currencies.
• 💸 He criticizes Secretary Yellen for using $650 billion in SDRs without congressional approval, including funds directed to Iran, Russia, and China.
• ⚖️ Kennedy proposes legislation requiring congressional approval for such large-scale distributions of American taxpayer money.