If Trump 47 Lowers Bank Regulatory Standards, Will ERCF Be Next?

There is speculation that Money-Center Banks soon will be required to hold less regulatory capital. Will this action influence Treasury's and FHFA's view of the ERCF?

I recently posted that the nomination of Jonathan McKernan as Treasury Undersecretary for Domestic Finance signaled that Treasury would want to maintain the overly-conservative capital regulatory provisions of the ERCF in connection with any GSE recap/release, in GSE Recap/Release and FHFA's Enterprise Regulatory Capital Framework For Dummies and Non-Capital Nerds (Because the ERCF is Here to Stay) (ERCF for Dummies).

Now comes news that Trump 47 will soon cancel an equity capital regulatory provision applicable to money-center banks. Below the paywall, I discuss this report and its possible implications for the ERCF’s continued application in any GSE recap/release.