Noting that the Basel process reminded him of the need for “humility,” FRB Vice Chair Barr today laid out next steps for the contentious end-game capital proposal. In short, it will be entirely re-proposed with many specific changes to the current proposal (see FSM Report CAPITAL230) and a request to commenters to argue for still more over the planned sixty-day comment period. The re-proposal as it now stands along with changes to the proposed GSIB surcharge (see FSM Report GSIB22) would cut the hike for GSIBs under the new standards by about half to nine percent and the impact for FBOs is now said to be minimal. The impact on covered regional banks is also considerably less, likely now…..
The full report is available to retainer clients. To find out how you can sign up for the service, click here and here.