Davis Polk Financial Institutions practice head Margaret Tahyar was quoted in Law360 on banking regulations to watch in 2024.

“We’re in a regulatory supercycle,” Margaret said. “It took a while for the Biden administration to get in principals at all the agencies, and many of these items have been on the agenda for a while. But the March banking turmoil has brought renewed energy, focus and attention.”

One proposed regulation calls for significant increases in required capital at banks with at least $100 billion in assets. “Where I think there ought to be a major shift is on operational risk,” Margaret said. “U.S. banks already carry more capital than banks in other countries, and I think it’s a really open question why so much new capital has to come related to operational risk when it’s going to hit U.S. banks harder, particularly the largest banks, than other banks around the world.”

“Banking Regulation To Watch In 2024,” Law360 (January 1, 2024) (subscription required)

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