Federal regulators are moving forward with plans to finalize one of the last significant Obama-era rules governing long-term bank liquidity despite widespread expectations by banks that the proposal was all but dead.
Andreas Dombret, head of regulation at Germany’s central bank, fears entering “the next stage of … an eternal cycle” of crises as countries begin dialing back regulations.
Cynthia Blankenship, an executive at Bank of the West in Grapevine, Texas, has been a regular in Washington for years fighting for regulatory changes. She is encouraging other bankers to do likewise.
Federal Reserve Gov. Jerome Powell said capital levels have been well calibrated but that some changes to the capital rules may be in order to make compliance easier.
The Trump administration is prepping recommendations to address shortcomings in the capital markets in a report to be released next month, a top Treasury Department official said Monday.
A perfect risk-based capital ratio obviously is preferable to an admittedly imperfect leverage ratio. The problem is there is no perfect risk-based measure.
Having a leverage ratio as a backstop to risk-based capital requirements is sound, but the way it is currently calibrated is having a dramatic effect on financial markets.
