News & Events

Partner Keith Noreika was quoted in the International Finance Law Review (IFLR) on the latest round of comprehensive capital analysis and review (CCAR) for financial institutions. The article, titled “CCAR Results Highlight Fed’s Lack of Transparency,” discussed confusion among the institutions due to a lack of transparency from the Federal Reserve Board around what is being tested or how it is being tested; and reluctance from the Fed to become more transparent as it could result in firms building portfolios to optimize against the Fed’s models, introducing new or different kinds of risk. “The residual lack of transparency means that a lot of government and industry people who have to make long term business plans – which involves the allocation of capital and is expensive – do not know what it is the Fed is looking for,” Keith said. “I have confidence that there will be changes made, but it is sort of getting to be time for the Fed to show us what it means by being transparent.”

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