Congress moves to weaken capital rules for megabanks
S.J.Res. 110 — A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of the Treasury relating to "Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies". · Filed by Elizabeth Warren (D-MA) · Introduced Mar 4, 2026 · Referred to committee
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What it does
This resolution disapproves a Treasury Department rule that would modify capital and debt requirements for the largest U.S. banks. If passed, the rule would be nullified and have no legal effect. The resolution was introduced by Senator Warren and would block stricter financial safeguards for systemically important banks.
Why we flagged it
This is a Congressional Review Act (CRA) disapproval resolution targeting a post-2024 Treasury rule that would strengthen capital and leverage standards for systemically important banks. The mechanism is straightforward deregulation: voiding a rule that would impose stricter financial safeguards on megabanks.
What the text implies
- Disapproving this rule may trigger CRA's 'same rule' prohibition, preventing Treasury from issuing a substantially similar rule without new congressional authorization—effectively locking in weaker standards for the duration of this Congress.
- The rule targeted 'enhanced supplementary leverage ratio' (eSLR) standards; disapproval reverts to pre-2025 eSLR levels, reducing the equity cushion megabanks must hold against total assets, increasing leverage risk.
- Loss-absorbing capacity (TLAC) requirements for global systemically important banks (G-SIBs) would remain at pre-rule levels; if the rule imposed higher TLAC minimums, disapproval leaves banks with lower debt-maturity buffers to absorb losses in stress scenarios.
- A successful disapproval signals to financial markets that Congress may block future capital-adequacy rules, potentially chilling regulatory action and emboldening industry lobbying against post-crisis safeguards.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Blocking stricter capital and debt requirements for the largest banks reduces their financial resilience and loss-absorbing capacity, increasing systemic financial risk and the likelihood that taxpayers would bear costs in a future crisis. Citizens lose the protective effect of enhanced regulatory safeguards designed to prevent bank failures.
Who stands to gain
- U.S. global systemically important bank holding companies (JPMorgan Chase, Bank of America, Citigrou
- Their subsidiary depository institutions
Named in the bill
Department of the Treasury, U.S. Global Systemically Important Bank Holding Companies (G-SIBs), Federal Reserve, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Senator Elizabeth Warren, Congressional Review Act (CRA), 5 U.S.C. Chapter 8, Enhanced Supplementary Leverage Ratio (eSLR), Total Loss-Absorbing Capacity (TLAC)
Where it stands
- Mar 4, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Mar 4, 2026 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,914 characters) on Apr 16, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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