In this report, we assess FRB Chairman Powell’s appearance today before House FinServ at which he confirmed remarks today from Vice Chairman Quarles announcing that the FRB will propose a framework for tailoring regulations for banks above the $250 billion threshold laid out in the recent finreg law (see FSM Report SIFI27). As we noted yesterday (see Client Report FEDERALRESERVE46), the FRB is also working on a framework for banks between $100 billion and $250 billion as soon as possible. Mr. Powell also reinforced that the FRB’s support for the SEC’s money market fund rule (see Client Report MMF13) and opposition to congressional repeal efforts.
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