US Federal Reserve Governor Lael Brainard’s unsuccessful campaign for a temporary bank buffer against an economic downturn got affirmation yesterday from the main architect of post-crisis rules.
“We’re at or near the peak of lending or the lending cycle,” said former Fed governor Daniel Tarullo, who for eight years led the charge on implementing Dodd-Frank Act requirements. “That’s the time when theory tells you you should increase capital requirements.”
Tarullo added at a Washington, DC, conference*: “Right now, I think, would be an opportune time to impose a countercyclical capital buffer.”
Fed’s Brainard’s drive for countercyclical capital buffer gets boost from Tarullo
22 May 2019 9:44pm