FRB Vice Chairman Barr’s speech today outlines near-term U.S. regulatory-capital policy, confirming our earlier assessment that a sweeping proposal will soon be released. There are few surprises in the speech, which outlines a “holistic” construct comprised of U.S. action on the “endgame” rules and revisions presaged in the Fed’s response to SVB’s failure (see Client Report REFORM221). As detailed in this new FedFin report, the agencies also plan to retain the GSIB surcharge largely as is despite technical flaws in order to reduce GSIB size and give super-regionals a fighting chance.
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