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May 3, 2013

Fed’s Tarullo wants big banks to hold more capital

WASHINGTON (Reuters) – Banks’ limits on how much they can borrow should be tighter than what is called for under a global pact, a top Federal Reserve official said, as calls to cut the size of the largest banks continue.

Fed Governor Daniel Tarullo said that the limit, known as a leverage ratio, may have been set too low in Basel III, a worldwide agreement aimed at making banks safer after the devastating 2007-09 financial crisis.

May 3, 2013

US Fed’s Tarullo calls for higher bank capital levels

WASHINGTON, May 3 (Reuters) – U.S. regulators could order
the biggest banks to ramp up their capital holdings beyond what
is called for under an international agreement, a top Federal
Reserve official said on Friday.

Fed Governor Daniel Tarullo said in a speech that the
leverage ratio – which limits the amount of money a bank can
borrow to fund its business – established by the international
agreement, known as Basel III, may have been too low.

May 1, 2013

Deutsche Bank slams Fed proposal on foreign bank oversight

WASHINGTON, May 1 (Reuters) – Deutsche Bank AG
lashed out at a U.S. proposal to tighten oversight of foreign
banks that could force the German bank to hold far more capital
and which has drawn the ire of foreign regulators.

European bankers have been lobbying the Federal Reserve, and
Fed board member Daniel Tarullo in particular, to try to beat
back new rules that would force foreign banks to lump all their
U.S. subsidiaries under a single holding company.

Apr 25, 2013

U.S. council warns of threat of cyber attacks, market runs

WASHINGTON, April 25 (Reuters) – Regulators should guard
against runs on the shadow banking system and watch out for
cyber attacks on banks in coming months, the top U.S. financial
stability group said on Thursday.

The Financial Stability Oversight Council, which was set up
after the 2007-2009 crisis to watch for developing threats to
the financial system, also urged a reform of market benchmarks
after a global rate-rigging scandal hit the Libor interbank
rate.

Apr 18, 2013

Treasury official questions existence of big bank subsidy

NEW YORK (Reuters) – A Treasury Department official on Thursday rebuffed recent arguments that giant banks enjoy cheaper borrowing because markets think the government would bail them out in a crisis.

Mary Miller, Treasury’s undersecretary for domestic finance, said in prepared remarks for a speech at an economic conference in New York that it is not necessarily true that the biggest banks borrow more cheaply than smaller competitors can.

Apr 18, 2013

Financial advisers’ credentials mislead seniors, watchdog says

WASHINGTON, April 18 (Reuters) – The U.S. consumer watchdog
on Thursday called for tougher oversight of the credentials that
financial advisers use to show they are trained to work with
older Americans.

The Consumer Financial Protection Bureau said these
financial advisers use more than 50 different credentials, some
of which they can simply buy online.

Apr 15, 2013

Bank regulators gain ground against too-big-to-fail bailouts

WASHINGTON/NEW YORK (Reuters) – For the past year, a special team of U.S. bank regulators has been on a quiet mission to end the belief on Wall Street that large banks are “too big to fail.”

The team from the Federal Deposit Insurance Corp has hosted more than two dozen meetings with bond investors, analysts and other stakeholders to lay out in detail how a failing firm would be liquidated.

Apr 15, 2013

U.S. bank regulators gain ground against too-big-to-fail bailouts

WASHINGTON/NEW YORK, April 15 (Reuters) – For the past year,
a special team of U.S. bank regulators has been on a quiet
mission to end the belief on Wall Street that large banks are
“too big to fail.”

The team from the Federal Deposit Insurance Corp has hosted
more than two dozen meetings with bond investors, analysts and
other stakeholders to lay out in detail how a failing firm would
be liquidated.

Apr 11, 2013

Senate Democrats urge regulators to rethink use of consultants

WASHINGTON, April 11 (Reuters) – Senate Democrats urged
regulators to rethink the way they use outside consultants to
help fix problems at banks, after such consultants reaped some
$2 billion in fees for conducting botched reviews of past home
foreclosures.

Bank regulators could directly contract with the consultants
rather than leaving hiring decisions and oversight to the banks
themselves, Democratic Senator Jack Reed of Rhode Island
suggested at a Senate Banking subcommittee hearing on Thursday.

Apr 10, 2013

Lawmakers lambast Fed, others for hiding behind “trade secrets”

WASHINGTON (Reuters) – Two Democratic lawmakers lambasted federal regulators whom they accuse of using an obligation to protect bank “trade secrets” as an excuse not to hand over details of a botched review of home foreclosures.

“Breaking the law is not a corporate trade secret,” Senator Elizabeth Warren of Massachusetts and Representative Elijah Cummings of Maryland told the Federal Reserve and the Office of the Comptroller of the Currency in a letter on Wednesday.