‘Wake-Up Call’
Karen Shaw Petrou, co-founder of Federal Financial Analytics Inc., said these moves illustrate the public’s growing sentiment against the largest banks, whose response has been sluggish.
“It’s a wake-up call,” Petrou said. “I have a seen a lot of things happen regardless of the most nominally sophisticated lobbying. They need to be more than scared.”
Joseph Engelhard, a former Treasury official who is now senior vice president at Capital Alpha Partners LLC, an investment advisory firm, said the most likely impact will be on regulations, including on the Fed’s capital buffer for systemic institutions and living wills.
“These amendments passing incrementally add to the political pressure that regulators are already very cognizant of as they finalize the rules,” Engelhard said.