#capital; #MIs; #Barr; LTV; HTM

11 07, 2023

FedFin on: Capital Call

2023-07-11T16:35:09-04:00July 11th, 2023|The Vault|

As we detailed yesterday, FRB Vice Chair Barr laid out what he called a holistic view of bank capital standards that encompasses end-game rules, stress testing, post-SVB lessons, GSIB restrictions, and resolvability.  This still isn’t wholly holistic – the Fed also plans action on new liquidity rules that by inference will have significant implications for how all of these capital rules work in practice.  But, even if this new regime is wholly holistic – let alone holy holistic as Mr. Barr suggests – it will have a dramatic impact on housing finance the instant it’s proposed no matter continuing promises of deferred implementation….

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11 07, 2023

GSE-071123

2023-07-11T15:36:26-04:00July 11th, 2023|4- GSE Activity Report|

Capital Call

As we detailed yesterday, FRB Vice Chair Barr laid out what he called a holistic view of bank capital standards that encompasses end-game rules, stress testing, post-SVB lessons, GSIB restrictions, and resolvability.  This still isn’t wholly holistic – the Fed also plans action on new liquidity rules that by inference will have significant implications for how all of these capital rules work in practice.  But, even if this new regime is wholly holistic – let alone holy holistic as Mr. Barr suggests – it will have a dramatic impact on housing finance the instant it’s proposed no matter continuing promises of deferred implementation.  In this report, we look at what Barr said, how it affects our previous forecasts of the new capital regime, what else we know and when it all comes to pass.

GSE-071123.pdf

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