Largest Sifis should hold capital surcharge of at least 3%, says FDIC’s Bair
FDIC chairman Sheila Bair rejects argument by some bankers that a Sifi surcharge is not necessary
The largest systemically important financial institutions (Sifis) should be required to hold a capital surcharge of at least 3%, Sheila Bair, departing chairman of the Federal Deposit Insurance Corporation (FDIC), has told Risk.
Her comments come in response to testimony by Barry Zubrow, chief risk officer of JP Morgan Chase, to the House Committee on Financial Services on June 16. Zubrow argued that any surcharge on financial institutions deemed to be systemically important would be "a bridge
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