New York Fed: 'Regulatory Arbitrage Within the Firm'
May 22, 2026
May 22, 2026
NEW YORK, May 22 (TNSLrpt) -- The Federal Reserve Bank of New York issued the following staff report (No. 1196) in May 2026 by Nicola Cetorelli and Shohini Kundu entitled "Regulatory Arbitrage Within the Firm."
Here are excerpts:
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Regulation shapes the boundaries of firms. When prudential standards bind asymmetrically across subsidiaries of an integrated organization, internal capital markets become a mechanism for regulatory arbitrage. We st . . .
Here are excerpts:
* * *
Regulation shapes the boundaries of firms. When prudential standards bind asymmetrically across subsidiaries of an integrated organization, internal capital markets become a mechanism for regulatory arbitrage. We st . . .