True, True, and Irrelevant: Common Fallacies About Current GSIB Capital and Oncoming Requirements
Introduction Since the release of the banking agencies’ Basel III Endgame capital proposal in late July, it has been suggested […]
Opinion
Opinion
Opinion
Federal Reserve Research Underscores the Illogic of Recent Capital Proposal
Introduction In July, the Federal Reserve and other banking agencies issued a proposal representing the most significant change to large bank capital
Opinion
Capital Insights: The Coming $1.4 Trillion Tax on Financial Services Provided by Large Banks
Introduction The recently released Basel III Endgame proposal has received much attention since it was released by regulators at the
Opinion
The Federal Reserve Should Revise the U.S. GSIB Surcharge Methodology to Reflect Real Risks and Support the Economy
Executive Summary In this note, we explain how the U.S. methodology for assessing a capital surcharge on global systemically important
Opinion
Capital Insights: Proposed Market-Making Requirement a Threat to Liquidity, Economy, and Financial Stability
Introduction The size and depth of U.S. capital markets is the envy of the world and facilitates a significant amount
Opinion
Capital Insights: New Bank Capital Rules Will Handicap Small Businesses
Introduction Recently, the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (US agencies)
Opinion
Capital Insights: Demystifying the Consequences of Higher Capital Requirements
Recently, the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency issued a proposal to substantially increase capital requirements
Opinion
FDIC Risk Review: The Largest Banks Remain Well Diversified
It is well known that diversification in an investment portfolio lowers its risk. The same is true for a bank’s
Opinion
Too Much of a Good Thing: Unnecessarily Raising Capital Requirements on the Largest Banks Will Exact a Real Economic Toll
It is expected that bank regulators will soon release a proposal to raise capital requirements for the largest U.S. banks.
Opinion
A Holistic Review of Large Bank Capital: Findings from a New Report
Introduction In a hearing on Tuesday focused on recent failures of regional banks, banking regulators repeated their intention to propose