A US Federal Reserve advisory panel has recommended that requirements be eased further in the central bank’s proposal to align firms’ capital standards with their stress test results.
The bankers panel, whose members include Bank of America Chief Executive Brian Moynihan and Citigroup Chief Executive Michael Corbat, met with the Fed board to voice concern that firms wouldn’t have enough flexibility to distribute dividends, according to a meeting record posted recently.
The 12-member Federal Advisory Council, which meets with the Fed in Washington four times a year, also said this “stress capital buffer” proposal aimed at simplifying the capital regime doesn’t make stress tests transparent enough to industry.
Fed advisory panel says 'stress capital buffer' plan doesn’t go far enough to ease requirements
6 November 2018 10:19am