The Federal Deposit Insurance Corp., which is still run by a Barack Obama appointee, refused to sign on to the Fed and OCC’s leverage proposal.
“Strengthening leverage capital requirements for the largest, most systemically important banks in the United States was among the most important post-crisis reforms,” FDIC chief Martin Gruenberg said in a statement. This proposal, he said, dials back a limit that “served well” to curb excessive leverage.
Marcus Stanley, policy director at Americans for Financial Reform in Washington, accused the Fed and OCC of “caving in to the agenda of too-big-to-fail banks” to make changes he called “irresponsible.”
But in the Fed’s proposal on stress tests, it aimed to make sure that Wall Street capital requirements are unchanged or even higher. Fed Vice Chairman for Supervision Randal Quarles said the effort “simplifies our capital regime while maintaining its strength.”
JPMorgan’s Lake said the proposed revision will “better reflect reality.”
This article was provided by Bloomberg News.