Financial Regulatory Forum

US wants banks to prepay fees to meet failure bill

Chairman of the Federal Deposit Insurance Corporation Sheila Bair briefs the media on the bank and thrift industry earnings for the second quarter of 2009 while in Washington, August 27, 2009. The number of problem U.S. banks and thrifts on an official watchlist rose sharply to 416 in the second quarter of 2009 from 305 in the prior quarter, as the industry recorded a $3.7 billion loss. The FDIC said on Thursday that the industry swung back to a loss in the second quarter after reporting a $7.6 billion profit in the first quarter, primarily due to costs associated with rising levels of bad loans and falling asset values. REUTERS/Larry Downing (UNITED STATES BUSINESS POLITICS) By Karey Wutkowski
WASHINGTON, Sept 29 (Reuters) – U.S. banking regulators proposed on Tuesday that banks prepay three years of fees to help cover the rising cost of bank failures, now put at $100 billion through 2013.

Banks would prepay $45 billion of regular quarterly assessments under the plan, but would not have to recognize the hit to their earnings until the fees are normally due.

(more…)

ANALYSIS-Sovereign funds join forces for strategic investment

By Natsuko Waki
LONDON, Aug 18 (Reuters) – An increasing number of sovereign wealth funds are working in concert to make joint strategic investments in order to reduce risks and maximise returns, which could provide a stabilising force in financial markets.

(more…)

  •