An athlete knows that just showing up on race day does not make him or her a top contender — achieving that status requires practice, hard training, and the willingness and ability to make adjustments in an ongoing effort to improve. Athletes also know how rewarding it can feel to challenge their minds and bodies and overcome all obstacles to cross the finish line.
Is this how financial institutions will feel once they have complied with all the regulatory fallout from the recent financial crisis? Regulatory proposals, with their multifaceted provisions, are becoming the training runs for the final implementation marathon. As financial institutions review these proposals and anticipate how to meet requirements, they must determine their ultimate goals, set plans, and evaluate the adjustments and practice runs necessary to cross the finish line. Such a journey can be daunting — just when you think you have conquered one mile successfully, you turn the corner and face ten more. Like athletes, financial institutions also will face many obstacles along the way, including the proposed Enhanced Prudential Standards and Early Remediation Requirements for Covered Companies (Regulation YY).