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Banks, even the very biggest, although not the most foreign, are finally getting a break from President Banks Love Me. Capital requirements are coming down, leading to much rejoicing.

“Since the financial crisis, the nation’s largest banks have more than doubled their capital levels and all passed annual stress tests,” said Consumer Bankers Association President and Chief Executive Richard Hunt. “Regulations should be tailored for the strength of our banking industry and adjust as necessary to balance oversight with ensuring banks can continue meeting consumer needs, fostering economic growth and ensuring financial stability.”

Yea, you know, like they did in the years leading up to 2008. Anyway, speaking of “adjusting as necessary,” the banks for which Hunt speaks only have to plan on dying every four years now, since nothing material could possibly change in the interim.

Under the eased requirements for living wills, the largest U.S. banks, including Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc., would produce full living-will plans every four years rather than every year.

Every two years, banks would file pared-down versions of the plans, addressing capital and liquidity, core parts of their wind-down strategies and any major shifts in their operations.

Federal Reserve Gives Large Banks a Break on Postcrisis Rules [WSJ]


michael barr

Top Bank Regulator Promises More Stress, Less Merging

Michael Barr’s also gonna have a real close look at those living wills.

Wells Fargo.Insane

Of Course Wells Fargo Flunked Its Latest Living Will Test

Wells Fargo is failing tests like a hungover freshman who can't even read.

By AKS.9955 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Banks Throwing Lavish Stress-Test Graduation Parties With Money Carefully Hoarded To Pass Stress Tests

And why not? It’s not like they’ll need those capital buffers anymore, and there’s much to celebrate.

By U. S. Treasury (U. S. Treasury hard copy for G8 Summit) [Public domain], via Wikimedia Commons

Fed Officials Would Like To Have Less To Do

And think other central bankers should work publishing hours, as well.


Deutsche Bank’s Money Laundering Controls Still Need A Touch Of Work

Not that the Federal Reserve is mad about it or anything. Oh, they are?