The Financial Services Forum (Forum) announced the appointment of Kevin Fromer as its new President and CEO. In his new role, Fromer will lead the Forum to promote a healthy financial system that supports economic growth and opportunity for all Americans. “Our members serve our clients each day with the capabilities we bring to help them compete, produce jobs, and drive the economy forward,” said Forum Chairman and Bank of America CEO Brian Moynihan. “Kevin has the experience to help us as we engage with policymakers on the best ways to promote growth and maintain financial stability.”
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."
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).
Washington Post: The banking industry’s rough year could finally test whether Dodd Frank is strong enough
‘The Fed’s stress tests show that large financial institutions can withstand a crisis far worse than 2008, and the largest banks have “living wills” to guide an orderly wind-down without putting taxpayer money at risk,’ said John Dearie, acting chief executive of the Financial Services Forum, an industry group.”
“Over the past five years, through legislative, regulatory, and industry-initiated changes, significant improvements have been made to strengthen the U.S. financial system. Bank capital and liquidity have more than doubled to record levels, leverage has been reduced, risk management procedures and methodologies have been improved, compensation structures have been reformed to align incentives with the safety and soundness of the institution, and large financial institutions are less complex."
“The firms have taken meaningful, concrete steps to ensure their plans are credible and that no firm is too big to fail,” said Rob Nichols, president of the Financial Services Forum, a trade group that represents big banks.
Financial Advisor Magazine: Financial Regulators Chided For Making Conflicting Cybersecurity Demands
"At the session, Financial Services Forum President and CEO Rob Nichols argued the forced shrinkage of firms chastised as “too big to fail” would increase cybersecurity dangers for the entire financial system because of the high degree of interconnections."
Testimony of Forum President & CEO on Cybersecurity Efforts and Coordination in the Financial Sector
Forum President and CEO Rob Nichols recently testified before the House Financial Services Financial and Consumer Credit Subcommittee at a hearing entitled: “Protecting Critical Infrastructure: How the Financial Sector Addresses Cyber Threats.” In his testimony, Nichols described the important role large financial institutions play in combatting cyber threats and how these institutions not only protect their banks’ customer information in the event of a cyber-attack, but the financial system as a whole.
“Since the 2009 crisis, U.S. banks have taken many significant steps to dramatically improve the safety and soundness of the financial system,” Financial Services Forum President and CEO Rob Nichols said in a statement.
However, Rob Nichols, president of the Financial Services Forum, which represents big banks, said: “The narrative that Wall Street is trying to roll back or gut Dodd-Frank is simply false.”