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".

What This Bill Does

This is a "disapproval resolution," which is a specific type of congressional action that allows Congress to cancel or block a regulation that a federal agency has recently issued. In this case, Congress is targeting a rule created by the Department of the Treasury that deals with how the largest U.S. banks — known as "Global Systemically Important Banks" (or G-SIBs) — are required to hold financial reserves and maintain certain debt structures. These are banks considered so large and interconnected that their failure could threaten the broader economy.

The Rule Being Challenged

The Treasury rule in question changes two key financial requirements for these mega-banks. The first involves something called the Enhanced Supplementary Leverage Ratio, which is essentially a rule about how much of their own capital (as opposed to borrowed money) these banks must keep on hand as a financial cushion. The second involves Total Loss-Absorbing Capacity and Long-Term Debt requirements, which determine how much debt these banks must hold in a form that could absorb losses during a financial crisis without requiring a government bailout. The Treasury's rule modifies these existing standards, and this resolution seeks to undo those changes.

Who Is Affected

This bill primarily affects the largest U.S. bank holding companies and their banking subsidiaries — a small number of institutions whose size makes them subject to stricter oversight. Indirectly, it could affect everyday Americans, since these banks hold deposits, issue loans, and play a major role in the financial system. If the resolution passes and is signed into law, the Treasury's rule would be cancelled and the previous requirements would remain in place.

Where It Stands

The resolution was introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs, where it will be reviewed before any further action is taken.