ABA Provides Insights on Capital Markets Reform to Treasury

American Bankers Association staff recently met with officials at the Treasury Department, which is in the process of issuing recommendations related to capital markets regulatory reform in response to President Trump’s executive order on core principles for financial regulation. ABA yesterday wrote to Treasury summarizing the meeting and outlining several bank-related concerns affecting capital markets.

Specifically, ABA recommended not making the global systemically important bank surcharge procyclical under the CCAR process, expanding the definition of high quality liquid assets to prevent liquidity hoarding, recalibrating the Commodity and Futures Trading Commission’s swap dealer registration threshold to better reflect systemic risk, revising the CFTC’s rigid implementation of the swap dealer exclusion for insured depository institutions, removing initial margin requirements for swap transactions with affiliates and revisiting the overbroad application of U.S. swaps rules to U.S. banks’ foreign branches. For more information, contact ABA’s Ananda Radhakrishnan.