Mark Welshimer and Benjamin Weiner Quoted in Risk.net Article on G-SIB Surcharge

November 3, 2017
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On November 3, Risk.net quoted Mark Welshimer and Benjamin Weiner in an article titled “Banks prepare for battle with Fed over G-Sib rules,” which explores a proposed change to the Federal Reserve's FR Y-15 reports that would include client clearing exposures and notional amounts in the calculation of banks' systemic risk scores for purposes of the G-SIB surcharge, potentially adding more than $10 billion in additional capital requirements to the eight U.S. G-SIBs. Benjamin commented on how the new methodology would not be in line with the purpose and goals of central clearing because it would treat cleared transactions as contributing to complexity to a greater degree than bilateral OTC transactions, and Mark spoke about the significance of the Federal Reserve possibly incorporating the G-SIB surcharge into the Federal Reserve's CCAR.