This trend in increased buybacks could continue for a while as it looks like the UK regulators have modified their regulatory arrangements over the past year to remove some substantial amounts of non-risk assets from the composition of their Leverage Ratio; leaving the institutions largely over-capitalized.
BOE regulatory statement here.
The institutions seem to be using the newly excess regulatory balances to buy back shares to get back to a preferred ROE.
There is current potential for this same series of events to occur in the US system either by a US regulatory mod like we saw here in UK (Mnuchin's Treasury is currently looking at it) or just by the Fed substantially reducing the amount of non-risk reserve balances currently held by the institutions at the Fed under the current QE monetary policy.
It might work out to be a few $100B issue to the US institutions.
HSBC reports increased profits and says it will buy back another $2 billion worth of shares https://t.co/sqx6KDo7Z1— NYT Business (@nytimesbusiness) August 1, 2017
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