In this report, we continue our assessment of U.S. election impact, prioritizing action on financial-policy issues where there is evident policy consensus emerging among the Trump Administration, GOP Congressional leadership, and progressive Democrats. Yesterday, we highlighted significant changes to OLA and FRB emergency-liquidity powers (see Client Report RESOLVE42). Today, we turn to regulatory capital, most notably the potential for action on a leverage requirement akin to the ten percent one included in Rep. Hensarling’s legislation (see FSM Report REFORM121). Combined with regulatory-leadership changes (see Client Report ELECTION21) and decisions we expect the FRB soon to finalize (see Client Report ELECTION22), large-bank regulatory capital requirements are likely to rise materially with or without accompanying reductions in regulatory burden.
The full report is available to retainer clients. To find out how you can sign up for the service, click here.