WASHINGTON — Banks and public interest groups are squaring off on whether the Federal Reserve Board should extend its proposed capital surcharge on the largest and most complex U.S. banks to be included in the agency’s annual stress test analyses.
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But Dennis Kelleher, president of public interest group Better Markets, argued that the G-SIB surcharge is a capital requirement like any other, and as such should be included with other capital requirements that are examined during the stress tests. Including the surcharge “would allow a dynamic regulatory reaction to new risk stemming from changes in financial markets and business models of the financial institutions” subject to the surcharge, Kelleher said.
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Read the full American Banker article by John Heltman here.