Quarles Advances Ambitious, Wide-Ranging Reg Rewrite
In his first of two days before Congress, FRB Vice Chairman Quarles today appeared before the House Financial Services Committee in an unusually substantive and policy-setting session. In this report, we detail the areas in which Mr. Quarles broke new ground – most notably with regard to stress testing, liquidity regulation, TBTF, the GSIB surcharge, and CRA, noting also the many other issues on which new positions were laid out. These included criticism from GOP leadership not so much of the FRB’s pending rewrite of board responsibilities (see FSM Report CORPGOV23), but of what the Members termed the Fed’s already over-heavy hand sitting in on board meetings and forcing directors to resign.
