As we detailed yesterday, FRB Vice Chair Barr laid out what he called a holistic view of bank capital standards that encompasses end-game rules, stress testing, post-SVB lessons, GSIB restrictions, and resolvability. This still isn’t wholly holistic – the Fed also plans action on new liquidity rules that by inference will have significant implications for how all of these capital rules work in practice. But, even if this new regime is wholly holistic – let alone holy holistic as Mr. Barr suggests – it will have a dramatic impact on housing finance the instant it’s proposed no matter continuing promises of deferred implementation….
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