The proposal to ease compliance with the Volcker Rule was portrayed as a rollback of the Dodd-Frank ban on proprietary trading. But it wasn't — here's why.
More than a dozen lawmakers wrote to the banking agencies Friday, arguing that any regulatory reforms to the Community Reinvestment Act should focus on expanding access to credit.
Fed Chair Jerome Powell said Thursday that the central bank's board of governors will take a vote before Wells Fargo is ultimately released from its growth restriction mandate, a decision that had previously been left up to staff.
Over the past week, regulators have proposed the most substantial changes to capital requirements for the largest banks in years, but the most startling thing was how unremarkable they were.
The agencies proposed changes to the way they apply a capital backstop to the largest systemically important firms, replacing a static leverage ratio with a more dynamic ratio that takes each bank’s risk profile into account.
With the largest banks remaining profitable and globally competitive, Federal Reserve Chairman Jerome Powell said he has not yet heard a compelling case for giving them substantial regulatory relief.
In his last major speech as the agency’s No. 2, Thomas Hoenig said it would be a “serious policy mistake” to relax measures such as the supplementary leverage ratio, but he was more open to regulatory relief in other areas.
