Today, Simon Johnson, is representing CFA Institute Systemic Risk Council (SRC) on a crucial issue of prudential policy: the future of US bank capital requirements.
In testimony before the Subcommittee on Financial Institutions of the US House Financial Services Committee, he will discuss why simple leverage ratios are essential for financial stability, particularly as AI accelerates market dynamics and amplifies the speed of stress events across the financial system. He will also outline the systemic risks posed by recent moves to reduce equity requirements and the implications for economic resilience, credit allocation, and US financial and national security.
His testimony offers an evidence-based framework for evaluating proposed changes to the US bank capital regime.