FSB Provides Progress Update on SIFI Framework (with Lofchie Comment)
As part of the implementation of its policy framework for addressing risks associated with systematically important financial institutions ("SIFIs"), the Financial Stability Board has released three reports as described below:
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an updated list of global systemically important banks ("G-SIBs");
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a progress report on the reform of resolution regimes for global systemically important financial institutions ("G-SIFIs"); and
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a progress report on steps to increase the intensity and effectiveness of SIFI supervision.
Lofchie Comment: There were 8 U.S. "banks" on the list, including Goldman Sachs and Morgan Stanley, which are not primarily banking organizations, and Bank of New York and State Street, both of which I would think appeared at least in part for their involvement in settlement. The remaining four U.S. banks are Citi, JPM, BofA and Wells Fargo. Neither of the reports provided many specifics on individual countries. Of the two progress reports, the one on supervision is the more interesting, as it contains a good deal of discussion of issues such as governance, risk management, and internal supervisory procedures.