Treasury Department’s Research Office Sees Need for Higher Capital Requirements

On February 12th, the Treasury Department’s Office of Financial Research published a paper analyzing new data about the most systemically important bank holding companies. The paper finds that although the largest banks satisfy international standards for risk­based capital, including a new capital buffer for global systemically important banks, these same institutions have relatively low leverage ratios compared to smaller banks. The authors therefore conclude that higher risk­based capital requirements for the largest institutions “could enhance the resilience of the financial system.” OFR Press Release.

Reverse Mortgages

On February 9th, the Consumer Financial Protection Bureau published a consumer advisory on reverse mortgages. CFPB Press Release.