G-Sibs see little sign of relief on Fed’s systemic buffer
Central bank liquidity and Treasuries will push US firms into higher G-Sib buckets
Faced with the prospect of a financial crisis in the wake of the Covid-19 pandemic, US regulators amended or augmented totemic banking rules. Yet one pillar of the supervisory framework stands unmoved: the Federal Reserve’s systemically important bank assessment methodology.
This has irked certain members of the club of eight US global systemically important banks (G-Sibs) and their lobbyists, especially now it’s clear that without a recalibration, some face higher capital requirements
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