After more than six years, the Fed is ending its order requiring greater risk controls at the bank, following an estimated $6 billion in trading losses in 2012 that stemmed from a single trader.
The Treasury secretary told the House Financial Services Committee that he has been in coordination with the U.S. bank regulators to soften the impact of the United Kingdom potentially failing to strike a deal on its exit from the European Union.
If the United Kingdom leaves the EU without a deal, certain contracts held by U.S. entities and relocated outside the U.K. will not face new margin requirements.
Federal Reserve Chairman Jerome Powell said a messy breakup between the United Kingdom and European Union could pose risks to the economy and financial system.
The new approach would replace the "current exposure methodology" that banks typically use to calculate what they owe or are owed in swaps, futures or options contracts.
U.S. officials are letting big banks exploit loopholes in Dodd-Frank rules that were meant to curb excessive risk-taking in derivatives, several academics and former policymakers warned. They urged state attorneys general to take action.
There's been a legislative bottleneck since the the crisis-era law went into effect, but Congress has moved forward on a handful of significant changes.
