August 21, 2023 (NO COMMENTS)

Revived plan could see capital for G-Sibs’ client clearing jump 40 times, says industry body

Yogi Berra, the baseball legend with a penchant for mangled aphorisms, could probably sum up the feeling among US clearing banks about the latest proposal to regulate their activities: “It’s déjà vu all over again.” On July 27, the Federal Reserve announced it wanted to add the complexity and interconnectedness indicators surcharge – which it already imposes on global systemically important banks (G-Sibs) – to those cleared over-the-counter derivatives in which banks act as agents for client