FRB announces income and expense data and transfers to the Treasury for 2015. The Federal Reserve Board (FRB) announced preliminary results indicating that the Reserve Banks provided for payments of roughly US$97.7 billion of their estimated 2015 net income to the US Treasury. In addition, the Federal Reserve transferred to the Treasury US$19.3 billion from Reserve Bank capital surplus on December 28, 2015, the amount necessary to reduce aggregate Reserve Bank surplus to the US$10 billion surplus limitation in the Fixing America’s Surface Transportation Act (FAST Act). The 2015 audited Reserve Bank financial statements, which are expected to be published in March, may include adjustments to these initial unaudited results. (1/11/2016) FRB press release.
FRB releases guidance to its examiners and banking institutions consolidating capital planning expectations for large financial institutions. The FRB released guidance to its examiners and banking institutions that consolidates the capital planning expectations for all large financial institutions and explains the differences in those expectations based on firm size and complexity. (12/21/2015) FRB press release.
FRB seeks comment on a proposed policy statement that details the framework it would follow in setting the Countercyclical Capital Buffer. The FRB announced that it is seeking public comment on a proposed policy statement detailing the framework that it would follow in setting the Countercyclical Capital Buffer. Comments on the proposed policy statement must be received by February 19, 2016. Appendix A.
US Treasury launches an investigation into the Treasury market. Reuters reported that the US Treasury launched an investigation into the workings of the Treasuries market following the “flash crash” on October 15, 2014, when the market was hit with severe instability. Referencing it as the most comprehensive review of the market in decades, the Treasury Department noted that its report will also be looking into gathering data on Treasury cash securities as well as whether the public would benefit from additional information about transactions. Treasury is seeking public comment on the evolving structure of the US Treasury market. (1/19/2016) Reuters. US Treasury press release.