Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law. The lawyers in the firm are also counsel to the international law firm, Squire Patton Boggs.

ISSUE: #85, September 2017

The Longbrake Letter
- Bill Longbrake
Optimism in the domestic and global economic outlooks has ratcheted up a notch, but has not reached a euphoric level that often presages a building speculative bubble and end-of-cycle climax. Political drama in our nation's capital and a spate of global and domestic natural disasters have not dampened optimism. Economic activity is grinding higher ever so slowly. Risks, which always lurk beneath the surface and which have a nasty habit of surprising markets, are slumbering. Eventually, a correction, or more likely a recession, will occur. Bill Longbrake observes that predicting timing is always difficult as the good times always seem to go on a lot longer than expected. In the absence of flagrant speculation-driven bubbles, there is good reason to expect favorable economic conditions to prevail for the next several quarters.

Extension of Transition Period for Certain Basel III Rules
- Ray Natter
This article reviews the Federal banking agencies' proposed rule that will extend the transition period for certain Basel III rules for banking organizations that are not required to use the Advanced Approach framework.

Federal Reserve Board's Role as a Prudential Regulator
- Jim Sivon
On September 12, Jim Sivon testified before the House Financial Services Subcommittees on Financial Institutions and Consumer Credit and Monetary Policy and Trade on behalf of the Financial Services Roundtable. This is his written statement which: (1) highlights several proposed reforms to existing prudential standards and supervisory policies to enable financial institutions to meet the financial needs of consumers and businesses while preserving financial stability; and (2) makes three general recommendations for financial regulatory reform.