Unmoved, Fed stands by G-Sib surcharge

Facing down frenetic lobbying and even US Treasury, central bank doesn’t blink on surcharge

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Like Tom Petty, the Federal Reserve won’t back down. The eight heavyweights of the US banking system, joined even by the US Treasury, had railed against a surcharge they said would cut into lending and leave them at a competitive disadvantage to Europe.   

Yet, despite the full court press, these efforts came to nought. The Fed will not be reworking its surcharge on global systemically important banks (G-Sibs) and has turned its attention to other matters, most immediately the regulatory