Central Banks
Fed’s Barr Says Changes to Capital Rules Likely to Be Significant
- He says ‘broad and material changes’ loom for July proposal
- Barr floats adjustments to operational, credit risk criteria
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The Federal Reserve’s top banking regulator said there will likely be significant changes to a controversial plan to force big lenders to hold more capital — another signal that Wall Street’s efforts to scuttle the initial proposal are succeeding.
Michael Barr, the Fed’s vice chair for supervision, said Friday that criteria related to operational, market and credit risks could be adjusted. The sweeping proposal, which was released last July, sparked a fierce lobbying campaign by some of the biggest players in finance.