U.S. regulator proposes easing post-crisis

Japan News | Sep 18, 2019 at 10:56 AM
  • A U.S. banking regulator on Tuesday proposed easing a rule requiring banks to set aside cash to safeguard derivatives trades between affiliates, marking one of the biggest wins for Wall Street lenders under the business-friendly Trump administration.
  • The proposal, by the Federal Deposit Insurance Corporation, could potentially free $40 billion across the nation’s largest banks, according to a 2018 survey by the International Swaps and Derivatives Association (ISDA), the global trade group that has been lobbying for the rule change for years.
  • Tuesday’s proposal would scrap the requirement for affiliates within the same bank group to post upfront margin when trading derivatives with one another.