CCAR methodology may give first glimpse of Fed’s transparency drive

Industry calls for more details on Global Market Shock and new private equity treatment

The in-depth methodology for this year’s capital analysis and review (CCAR) will shed light on the US Federal Reserve’s commitment to making the process more transparent, say lobbyists. They are keen for a more detailed description of the models used by the regulator, especially around the Global Market Shock (GMS) scenario, which has a significant impact on capital levels at the largest dealers.

“[The Fed] gave you a general, high-level sense of what they’re doing, but no details,” says