Lighter reg touch could be mixed blessing for regionals
By John Heltman
Regional banks are definite winners in the Federal Reserve Board’s plan to shake up its post-crisis regulatory framework, escaping a stringent set of requirements that would be reserved for the biggest banks. But not everyone is cheering. …Karen Shaw Petrou, managing partner of Federal Financial Analytics, said that when many of the post-crisis rules were proposed, there was concern that they could create new market disruptions, but the Fed seems equally unconcerned about disruptions that could arise from dismantling those rules now. “The U.S. is dismantling not only aspects of the rules … that do little good for all their cost, but also the liquidity, risk-management, and … the post-crisis resolution-planning requirements,” Petrou said in a research note. “Are we just dismantling the post-crisis framework as heedless of interactions and market forces as we were when it was put into place?”