Forum President & CEO Rob Nichols’ Statement Federal Reserve, FDIC Feedback on Resolution Plans

The financial services industry is strongly committed to working with the Federal Reserve and the FDIC to ensure effective resolution and recovery planning. The industry not only welcomes, but also needs comprehensive and substantive feedback from the regulators on the living will process.

Read more here.

Commentary: Forum President and CEO Rob Nichols Discusses Recent GAO Report on Large Bank Funding Differential on Bloomberg TV

Appearing on Bloomberg TV’s “Bottom Line”, Financial Services Forum President and CEO Rob Nichols explained that a recent GAO report that examined if a funding differential for large banks exists concludes that any cost of funding differential large banks once had has been dramatically reduced if not eliminated or reversed. Nichols further discussed why any such advantage will not come back in the event of a future crisis, citing the major legislative, regulatory, and industry changes since 2009, and explaining what motivates investor decisions.

In the interview Nichols said: “I think there are many conclusions here that show there’s not a borrowing cost advantage on the part of large institutions. When you add that together with all of the massive reforms that are underway and still being implemented, I think we can make a compelling case that if we want to keep our economy growing, we don’t want to add on and layer additional regulation and legislation at this moment of time.”

Recent Work

15 September, 2014

Forum President Rob Nichols Discusses Impact of Dodd-Frank, State of Financial Industry on ‘Engage with Andy Busch’

Financial Services Forum President and CEO Rob Nichols was a recent guest on “Engage with Andy Busch” where he spoke about the impact of the Dodd-Frank Act on the financial sector as well as the industry-initiated improvements made to ensure the strength and resilience of the financial system.
5 August, 2014

Forum Statement on Fed, FDIC Feedback on Resolution Plans

"The financial services industry is strongly committed to working with the Federal Reserve and the FDIC to ensure effective resolution and recovery planning. The industry not only welcomes, but also needs comprehensive and substantive feedback from the regulators on the living will process. Since 2009, substantial changes have made the financial system stronger, including banks' doubling of capital and liquidity, changing compensation structures, and the divestiture of many business lines to simplify the largest institutions.
5 August, 2014

American Banker Op-ed: Government Report on TBTF Banks Shows Progress

The findings of last week's government report on big bank subsidies were misconstrued in a recent column by Camden Fine ("A Subsidy of Any Size Is Still Too Big," Aug. 1, 2014). Mr. Fine argues that the study by the Government Accountability Office "reiterates the importance of ending the too-big-to-fail epidemic." In fact, the GAO report offers proof that meaningful progress has been made since the financial crisis.
31 July, 2014

ForumBlog: Why a too-big-to-fail ‘subsidy’ won’t come back in a future crisis

The long awaited Government Accountability Office (GAO) report, requested by Senators Sherrod Brown (D-OH) and David Vitter (R-LA), confirms the findings of a number of recent studies on the decline in funding advantage for the largest U.S. banks. Using the most recent data, and a number of different methodologies on bank funding, the report shows that any advantage for America’s largest banks that is attributable to expectations of another bailout has declined to a minuscule amount or even been reversed. That fact, coupled with the costs of new regulation for the largest six institutions, means that being above $500 billion in assets is now, quite possibly, a competitive disadvantage.

U.S. Global Banks Have More Than Doubled Their Capital Ratio Since 2009

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