Quarles Stands by Pending Revisions, Outlines Still More Relief for All but GSIBs
In this report, we assess FRB Vice Chairman Quarles’ appearance today before the Senate Banking Committee. It was surprisingly more emotional than the House hearing earlier this week (see Client Report FEDERALRESERVE44), with Ranking Member Brown (D-OH) calling the eSLR change (see FSM Report LEVERAGE13) “shameful” in the strongest terms heard from him in recent memory. Sen. Corker (R-TN) was almost as heated, urging that the changes to the SLR for custody banks in the Senate bill (see Client Report SIFI25) be dropped in conference. Mr. Quarles was also pressed on liquidity relief for non-GSIBs by Sen. Toomey (R-PA); Mr. Quarles said that allowing all but the GSIBs to come under the modified LCR makes sense and indicated that the FRB is working on the specifics of tailoring the LCR pending action on the Senate legislation.