Along with the ABA, we continue to urge bankers to contact the Agencies to express their concerns and ask that the rules be amended to eliminate the negative impact of the capital conservation buffer requirement’s limitation/prohibition on distribution on S Corp banks. The goal is to get the Agencies to effect a change during the phase-in period of the Final Rule that will address the problem. This is a Basel rule problem that should be resolved by the banking agencies. We are asking that the Basel rules take into account the unique structure of S-Corps in a way that provides equal treatment for C-Corp and S-Corp banks.
