Bank Rules and Housing Finance
In her Congressional testimony last week, FedFin managing partner Karen Petrou focused on the unintended consequences wrought by new banking proposal based on their cumulative impact. She thus went beyond the housing-finance implications we identified in our in-depth analysis of the complex capital proposals also to assess high-impact resolution standards. In this report, we expand on her testimony and our housing-finance specific assessment of the capital rules to identify how all the other rules proposed to date alter the capital proposal’s implications on its own.