Published: May 20, 2024
by Annie Pilon
In Small Business News
Goldman Sachs has reportedly been recruiting small businesses to advocate for its own interests.
According to a recent from Reuters, the bank connected small business owners with members of Congress who may have influence surrounding financial regulations. The goal is to convince these lawmakers that a new proposal to raise capital requirements for big banks would ultimately harm small businesses.
The proposal, which is known widely as Basel III Endgame, is a joint proposal by the Federal Reserve, Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency. The change would rewrite capital obligations for all banks with at least $100 billion in assets, largely requiring increases in aggregate capital levels.
On its surface, the proposal would only impact large banks – not small businesses. But many in the banking industry argue that the regulatory burden would force lenders to shut down certain offerings or increase costs for business customers.
To fight the proposal, Goldman Sachs recruited dozens of sma