Federal Deposit Insurance Corporation (FDIC)
Federal agencies finalise Volcker rule exceptions
The Federal Reserve, FDIC and other agencies agree on a final version of the Volcker rule to ban proprietary trading and investment fund activities, but with a series of exemptions
BoE and FDIC campaign for end to ‘early termination’ of derivatives contracts
International authorities want a ‘short-term suspension’ of the rights that allow derivatives contracts to be terminated ahead of schedule when a major financial institution is being resolved
FDIC inks MoU with China on bank resolution
The document, signed in Beijing yesterday, seeks to improve collaboration on resolution planning through the exchange of information and co-operation on risk monitoring
FDIC chair says Dodd-Frank means US regulators can manage failing Sifis
Martin Gruenberg argues Dodd-Frank Act's Title I and II provisions give ‘significant new authorities' to the FDIC to ‘plan for and manage the orderly failure of a Sifi'
FDIC chair discusses US effort to balance capital and leverage requirements
Martin Gruenberg says Basel III relies too heavily on capital ratios, potentially incentivising big banks to employ ‘imprudent' leverage strategies; discusses regulatory remedies
Bank portfolios flush with long-term assets exposed to interest rate risk as rates rise
FDIC's Gruenberg says banks' asset quality and loan balances have improved and fewer lenders are failing, but reach for yield may pose problems as interest rates return to more normal levels
Fed and FDIC agree 6% leverage ratio for US Sifis
Banking agencies announce rules to increase organisations' leverage ratios; measures remain controversial with the banking lobby and regulators, notably FDIC's Hoenig
Fed board member highlights 'especially daunting' challenge of cross-border bank resolution
Jerome Powell says new American approach could serve as a 'simplifier – making theoretically possible something that seemed impossibly complex'
FDIC officer reshuffle as Wigand retires
Arthur Murton steps up to lead OCFI, with Diane Ellis taking the vacancy created at the division of insurance and research
FDIC chief economist highlights factors behind community bank failure
Richard Brown says community banks play a ‘crucial role’ in the US financial system; presents research identifying common factors behind those that failed during various financial crises
FDIC clarifies approach to use of credit ratings
Article in latest edition of FDIC’s Supervisory Insights sets out expectations regarding credit risk due diligence, explaining what role credit ratings should play in making investment decisions
BIS paper finds higher US bank taxes may have only moved stability risk
Research into higher taxes imposed on wholesale funding by US banks finds they did reduce reliance on short-term borrowing, but says risks may simply have been pushed into foreign banks
Wall Street hoping for Fed reprieve for derivatives desks
Investment banks fear they will be subject to section 716 of the Dodd-Frank Act unless Federal Reserve gives relief
Fed director says rest of world lagging behind on cross-border resolution
Michael Gibson says US has had its resolution authority in place for years, but slow progress in other jurisdictions is causing delays; FDIC chair says talks with G-Sib host countries are ongoing
Plosser warns US regulations could cause unnecessary bail-outs
Philadelphia Fed president says existing efforts to end too-big-to-fail may ‘come up short' and advocates a more rules-based approach; criticises Basel III risk weights
FDIC’s Thomas Hoenig on bank separation, safety nets and Basel III
Hoenig tells Christopher Jeffery that Basel III is flawed, universal banks require legal separation, financial safety nets need cutting and monetary policy should move to non-zero interest rates
Booknotes: Bull By the Horns: Fighting to Save Main Street from Wall Street and Wall Street from itself
This is a great book with a clear message: no more bailing out of too-big-too-fail banks.
FDIC’s Hoenig blasts Basel III risk weights as insufficient
Thomas Hoenig argues that Basel III can be ‘gamed' and that the capital ratios may over-represent the actual state of banks’ balance sheets
FDIC's Hoenig calls for more action to correct incentives for financial companies
Speech to Asian bankers in Jakarta examines role of incentives in leading to the crisis, and hampering recovery
Fed demands more detailed 'living wills'
Federal Reserve and FDIC request additional information on risks that could derail resolution plans for largest bank holding companies, including issues of international co-operation
FDIC vice-chair says Basel III capital requirements provide illusion of safety
Thomas Hoenig says capital ratios allow banks to leverage up while outwardly appearing safe; warns systemically important banks have much worse leverage ratios than smaller institutions
US agencies clamp down on leveraged lending
Fed, FDIC and OCC issue updated standards for leveraged lenders amid concerns standards are again slipping and many institutions have ‘proven less than satisfactory’ in risk management practices
Top US regulators restless over too-big-to-fail
Fed’s Jerome Powell and FDIC’s Martin Gruenberg stress the need for ongoing progress in bid to eliminate ‘too-big-to-fail’ problem