The FRB Treasury Takes What It Likes from Global Rulebook
With Basel this week wrestling anew with controversies that could tear it apart, we begin our assessment of key details in the Treasury reform report with an analysis of its stand on U.S. participation in these and other global negotiations. As we noted in our overview of the Trump Administration’s first finreg-policy statement (see Client Report REFORM136), the Administration is at once supportive of global work and insistent on an America-First approach. It is similarly supportive of the pending output-floor compromise but disdainful of the standardized approach (SA) on which it is based. In this report, we note the global initiatives with which Treasury has concerns and what this means for U.S. and global action.