Douglas Landy, partner in Milbank, Tweed, Hadley & McCloy’s Global Leveraged Finance Group, provided commentary in a recent Law360 article titled, “Banking Regulation to Watch in 2016.”
On the topic of capital rules, specifically the Net Stable Funding Ratio (NSFR) from the Basel Committee for Banking Supervision, Mr. Landy explains, “While the Fed has addressed some of the issues with short-term funding through a new liquidity requirement finalized in 2014, the NSFR would address long-term concerns.” However, Mr. Landy cautioned, “There’s one massive doughnut in the middle of that, and that’s securities financing transactions. Look for the Fed to find some way to handle that in the near future as well."
