Large Banks, FBOs Win Regulatory, Stress-Test Relief

In this report, we assess the Federal Reserve Board meeting today approving final versions of the FRB’s tailoring standards, inter-agency tailoring standards, the parallel framework for foreign banking organizations, and FRB/FDIC resolution-plan requirements. All of these rules were adopted largely as proposed, with Gov. Brainard again dissenting on grounds that they provide undue relief that could endanger financial stability. The Board and other agencies have postponed a decision to advance branch-and-agency liquidity rules for foreign banks pending ongoing global deliberations about pre-positioning.