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