Federal Government Policy and Business

Janet Yellen Supports Changes to Systemically Important Distinction

The Wall Street Journal (online registration required): Federal Reserve Chairwoman Janet Yellen on Thursday said she would support a “modest increase” to the minimum size at which banks are drawn in for tougher scrutiny by the central bank.

At issue is the $50 billion threshold set by the 2010 Dodd-Frank law at which a bank automatically qualifies for Fed supervision and regulation under a set of tougher capital, liquidity and other requirements such as participating in the Fed’s annual “stress test” exam. Regional banks above the threshold like Zions Bancorp, Huntington Bancshares Inc. and Regions Financial Corp. are fighting for that bar to be raised and Ms. Yellen’s remarks are the latest sign that they may eventually be successful in that pursuit.

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