Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Inside Washington (07/23/2012)
  • WASHINGTON (7/24/12)--A Federal Reserve Board proposal that would place strict limits on the amount of credit exposure the largest banks can have to a major counterparty would overstate the level of excess risk exposures, according to new study by the Clearing House, a trade group. The Fed's plan, released in December, would require banks with more than $50 billion of assets to maintain a two-tier structure in how they limit their counterparty exposures (American Banker July 23). Large banks must comply with a 25% limit on exposure to a single counterparty, as required by the Dodd-Frank Act, but the Fed has said it may impose a secondary limit of 10% on some large banks. Big banks affected by the proposal say the single counterparty credit risk limit is too strict and would cause them to rebalance their portfolios, reducing the liquidity of the derivatives and securities lending markets. The current exposure method in the proposal overstates the underlying risk and is not an accurate exposure measurement tool, said Bob Chakravorti, the Clearing House senior vice president and chief economist ...


RSS print
News Now LiveWire
Apartment rental costs continue upward trend via @WSJ http://t.co/LHEAiRJyUj
42 minutes ago
Defense CU Council salutes top #Military #creditunions http://t.co/6BGANSXTXC
2 hours ago
#ICUDay sparks month-long campaigns @GCUAGov @NWCUA celebrating #CUDifference See #NewsNow http://t.co/TWoR6vW4Tj
2 hours ago
Social media use helps CUs establish credibility/authenticity says Amaia Stecker, @CUNA sr. social media media mangr. http://t.co/wWAPeDe7UW
3 hours ago
#creditunion affinity card programs make the grade for schools See #NewsNow http://t.co/TThZIvMRTO
17 hours ago