Fed’s Overhaul of Bank Capital Buffers Draws a Rebuke From Brainard

The video discusses the Federal Reserve's recent actions concerning banks, focusing on the stress capital buffer, which determines how much capital banks must hold against their assets in stress scenarios. Opinions on this move are mixed, with some seeing it as a green light for large banks to reduce capital buffers, while others believe it could increase them on average. The discussion also touches on the potential benefits for regional banks and questions the effectiveness of post-crisis rules in future crises.

In what ways could the current rules benefit regional banks during a crisis?

What concerns are raised about the effectiveness of post-crisis rules in the next crisis?