Chairman Barr delivered remarks at a hearing to address concerns over the lack of transparency in U.S. financial regulators' interactions with global governance bodies. The focus was on organizations such as the Bank for International Settlements (BIS), the Basel Committee on Banking Supervision (BCBS), and the Network for Greening the Financial System (NGFS).
"Despite numerous attempts to obtain transparency, we still know next to nothing," Barr stated. He highlighted that representatives from BIS and BCBS declined to testify but offered to answer questions in other venues, while NGFS did not respond.
Barr expressed concern over U.S. regulators' participation in these bodies without adequate Congressional oversight. "The European Commission is represented in the BCBS; however, there is no representation from the U.S. Congress," he noted.
He also mentioned instances where global governance bodies influenced U.S. regulations without public consultation, such as changes in GSIB standards favoring European banks over U.S. banks.
To address these issues, Barr introduced the Congressional Banking Regulation Priorities and Accountability Act of 2024, aiming to improve transparency and Congressional oversight of federal financial agencies' activities with global governance bodies.
"It strengthens Congressional oversight of the activities of federal financial agencies by improving transparency regarding their participation in global governance bodies," Barr emphasized.
Barr concluded by urging bipartisan support for his legislation and expressing his intent to discuss these issues further with witnesses at the hearing.
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