US Office of the Comptroller of the Currency says US banks may need $644 billion for new swaps rules

Bloomberg reports that “U.S. banks would need $644 billion in collateral to offset risks in swaps traded among themselves, according to an analysis of rules re-proposed by regulators.”

“Under revised rules for non-cleared swaps issued by the OCC, Federal Reserve and Federal Deposit Insurance Corp., banks would have to finance collateral and hold it in custody accounts that may be less profitable than other uses. As a result, OCC economists estimate the requirement will cost the banking industry between $2.9 billion and $6.4 billion annually once the rules are fully in place in 2019.”

More of the Bloomberg story is here.

The OCC release and associated links are here.

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