Milbank Financial Institutions Regulatory partner Douglas Landy was recently quoted in the Bloomberg article “Fed Still Reigns Supreme Over Banks, Despite Dodd-Frank Rewrite.” The article discussed that even if the Dodd-Frank bill passed by the Senate is also passed by the House, US banks will have to abide by the Fed’s Comprehensive Capital Analysis and Review (CCAR). The Federal Reserve will still be responsible for executing the CCAR exams and ensuring that the largest banks have sufficient capital and liquid assets to maintain operations throughout times of financial stress. Mr. Landy comments, “The notion that regulators may give up supervisory powers is a political narrative. I don’t see any sign of that whatsoever.”
