BATON ROUGE, La. (Reuters) – Policymakers must ensure that financial industry creditors do not expect government bailouts and must be willing to let firms fail in order to restore market discipline, a top Federal Reserve official said on Tuesday.
The remarks by Jeffrey Lacker, president of the Richmond Federal Reserve Bank, repeated much of what he has previously said about what regulators need to do to make the financial system safer. Lacker, a voting member this year on the Fed’s policy-setting committee, did not discuss monetary policy.
WASHINGTON/PROVIDENCE (Reuters) – Federal Reserve Chair Janet Yellen on Friday said she expected the central bank to raise interest rates this year, as the U.S. economy was on course to bounce back from a sluggish first quarter and headwinds at home and abroad waned.
Yellen spoke amid growing concern at the Fed about possible market volatility once it begins to raise rates, and a desire to begin coaxing skeptical investors towards accepting the inevitable: ending a 6-1/2-year stretch of near-zero interest rates.
WASHINGTON, May 21 (Reuters) – The chairman of a U.S.
congressional committee on Thursday subpoenaed Federal Reserve
documents and communications related to a 2012 leak of
information related to monetary policy, ramping up his attack of
the central bank’s handling of the case.
Republican Jeb Hensarling of Texas, who chairs the U.S.
House of Representatives Financial Services Committee, said in a
release that the Fed failed to comply with document requests
from the panel related to market-sensitive information that was
leaked to a private financial newsletter.
WASHINGTON (Reuters) – The largest overhaul of U.S. financial industry reform since the 2008 crisis hit a roadblock on Thursday, as a regulation relief bill passed a Senate committee with zero Democrats in support.
The Senate Banking Committee cleared the Financial Regulatory Improvement Act of 2015 with all 12 Republicans voting in favor, and all 10 Democrats voting against.
WASHINGTON (Reuters) – U.S. Federal Reserve officials believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labor market and softer data, according to minutes from the central bank’s April policy meeting.
“Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising (interest rates) had been satisfied …,” said the minutes, which were released on Wednesday.
WASHINGTON, May 19 (Reuters) – Democrats on the Senate
Banking Committee on Tuesday released their own version of a
regulation relief bill, keeping the proposed changes tightly
focused on small banks and consumer protection.
The Democrats’ bill is a rebuke to committee Chairman
Richard Shelby, who officially released his wide-ranging
legislation on Monday after circulating a draft version early
WASHINGTON (Reuters) – The July deadline for U.S. banks to show regulators how they can go through bankruptcy without causing wider mayhem or risk being broken up is a crucial test for the industry, a top U.S. regulator said on Wednesday.
In a wide-ranging interview at the Reuters Financial Regulation Summit, Tom Hoenig, second-in-command at the Federal Deposit Insurance Corporation, said that he was broadly behind regulatory relief provided to smaller banks in a bill introduced this week by U.S. Senator Richard Shelby, the chairman of the Senate Banking Committee.
NEW YORK (Reuters) – The biggest providers of exchange-traded funds, which have been funneling billions of investor dollars into some little-traded corners of the bond market, are bolstering bank credit lines for cash to tap in the event of a market meltdown.
Vanguard Group, Guggenheim Investments and First Trust are among U.S. fund companies that have lined up new bank guarantees or expanded ones they already had, recent company filings show.
NEW YORK, May 13 (Reuters) – The biggest providers of
exchange-traded funds, which have been funneling billions of
investor dollars into some little-traded corners of the bond
market, are bolstering bank credit lines for cash to tap in the
event of a market meltdown.
Vanguard Group, Guggenheim Investments and First Trust are
among U.S. fund companies that have lined up new bank guarantees
or expanded ones they already had, recent company filings show.
WASHINGTON, May 12 (Reuters) – A draft Republican bill in
the U.S. Senate takes aim at bank rules and insurance
regulations, also limiting restrictions on mortgage requirements
and proposes restructuring the Federal Reserve and other
The 216-page, eight section report released on Tuesday was
crafted by the staff of Senator Richard Shelby of Alabama who
chairs the Senate Committee on Banking and has made easing rules
for small banks and imposing reforms on financial regulators a