At a FinServ hearing today, the FRB and FDIC stood firm on the need for SIFI surcharges, although FRB Gov. Tarullo – speaking now for the FRB, not just himself – did not take as strong a stand on this topic as in a high-impact speech earlier this month. Indeed, Mr. Tarullo under questioning stepped back a bit, stating that his discussion of a SIFI surcharge double the Basel III seven percent minimum was meant only to note the largest possible surcharge academics have suggested, not to propose it.
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