Today, the House Financial Services Committee passed H.R. 4296, legislation authored by U.S. Rep. Blaine Luetkemeyer’s (MO-03) which would set parameters for federal financial regulators when establishing operational risk capital requirements.

“Operational risk capital requirements were first agreed to at the Basel Committee and then implemented in the United States by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Federal Reserve. Like many concepts created by the Basel Committee, the original intent may have been authentic but the implementation has brought about unintended consequences. My legislation will instill confidence by instituting clear guardrails for operational risk capital requirements that focus on an institution’s current activities and businesses. I thank my colleagues in the House Financial Services Committee for supporting this legislation and working to ensure capital standards are effective and appropriately tailored.”