Fact Sheet: Large, Global U.S. Banks Are Safer, Smaller, and Simpler
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Forum Statement on Federal Reserve, FDIC Feedback on Resolution Plans for Large Financial Institutions
“Over the past six years enormous progress has been made to improve the safety, stability, and resilience of the U.S. financial system. Capital has doubled, liquidity has tripled, and annual stress tests show that large financial institutions can withstand a crisis far worse than 2008. Since the last living wills determinations, large financial institutions have worked strenuously to implement structural changes, streamline business models and lower risk in line with feedback received from the Federal Reserve and FDIC. By design, the living will process is iterative and will be ongoing, and the industry remains committed to continuing to work with regulators to ensure effective resolution and recovery planning."
“Since he left government to enter politics, it seems Mr. Kashkari hasn’t kept up to date with the many ways in which US-based global financial companies have become simpler, stronger, and more streamlined to serve their customers and clients and drive the real economy. Since none of those financial institutions are within the jurisdiction of the Minneapolis Federal Reserve Bank, it isn't clear why this is his area of interest now, but hopefully some of the progress that has been made will be discussed today in Minneapolis.”
Financial Industry Associations: Total Loss Absorbency Requirement to Help Ensure G-SIBs Can Be Resolved
Today, The Clearing House, the Securities Industry and Financial Markets Association, the American Bankers Association, the Financial Services Roundtable, and the Financial Services Forum submitted comments to the Federal Reserve in response to its proposal to impose total loss absorbing capacity, long-term debt and related “clean holding company” requirements on global systemically important banking groups (G-SIBs). The associations express the industry’s strong support for a TLAC requirement for G-SIBs, which is a crucial aspect of ending “Too Big to Fail” by helping ensure that these institutions can be resolved in an orderly way at the expense of creditors and shareholders (and not taxpayers).
U.S. Global Banks Have More Than Doubled Their Capital Ratio Since 2009