CCAR ‘apocalypse’ leads to excess bank capital, says lobbyist

Head of new trade body says Fed should average capital requirements over multiple scenarios

Greg Baer
Greg Baer: “We support the Fed running multiple scenarios, averaging them over time, spreading the volatility”
David Beyda Studio

The head of a new trade association has called for the Federal Reserve to calculate average capital requirements over multiple scenarios in its annual stress tests, rather than holding banks to a single severe adverse scenario.

Greg Baer, chief executive of the newly launched Bank Policy Institute (BPI), told lawmakers at a House Financial Services Committee hearing that the Comprehensive Capital Analysis and Review (CCAR) programme’s “mono-model” approach levies unnecessary capital charges on

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