The Geopolitical Risk Index (GPR) is at its highest level in almost 25 years. Bank regulators and risk managers need to incorporate geopolitics into stress tests.
The U.S. economy is becoming more fragile. This is not a backdrop that calls for bank deregulation. It is one that demands resilience via loss absorbing capital.
I am testifying before the House Committee on Financial Services, Tuesday April 28 at 10am, about why this is a terrible time to weaken bank regulations.