FedFin Assessment: Treasury Capital Reforms and Their Strategic Impact
In this report, we build on our analysis of the overall Treasury report (see Client Report REFORM136) and its approach to global regulation (see Client Report REFORM138) with an in-depth look at the capital regime Treasury recommends. This differs considerably from the leverage-based approach in H.R. 10 (see FSM Report REFORM137), arguing instead for a balance of leverage, risk-based, and stress-test capital standards that also reflects other rules (most notably those related to liquidity and stress-testing) and accounting standards.