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May 22, 2015

Fed on track to hike rates as economic headwinds wane: Yellen

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.

May 21, 2015

U.S. House panel issues subpoena to Fed over 2012 information leak

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.

May 21, 2015

Senate panel’s bank oversight bill gets no Democratic votes

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.

May 20, 2015

Fed officials see June rate hike as unlikely: minutes

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.

May 19, 2015

U.S. Senate Democrats counter Shelby with own bank regulation bill

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
last week.

May 13, 2015

Banks must get ‘serious’ about bankruptcy plans: FDIC’s Hoenig

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.

May 13, 2015

Insight – ETF companies boost bank credit lines amid liquidity concern

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.

May 13, 2015

ETF companies boost bank credit lines amid liquidity concern

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.

May 12, 2015

U.S. Senator’s bill targets Fed, bank and mortgage rules

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
financial regulators.

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
priority.

May 12, 2015

US Senate Banking bill proposes several changes for Fed-source

WASHINGTON May 12 (Reuters) – The regulation relief bill
drafted by the U.S. Senate Banking Committee Chairman includes
changes to the Federal Reserve system and an easing of mortgage
rules for the financial industry, according to a person familiar
with the draft.

The bill also proposes to raise the threshold for banks to
be subjected to enhanced supervision, to $500 billion in assets
from $50 billion, said the source, who is a Republican aide on
the committee.

    • About Michael

      "In June 2009, Michael Flaherty became a Chief Correspondent for Reuters News, leading a team of journalists who cover investment banking, mergers & acquisitions, private equity and hedge funds, equity capital markets, natural resources and property across Asia. He arrived in Hong Kong in Feb. 2008 as Reuters' Asia Financial Services correspondent, covering the investment banks and M&A. Flaherty was hired by Reuters in New York in Dec. 2003. He was voted Reuters Journalist of the Year for his 2007 coverage of the U.S. private equity boom and bust. He started at Reuters with the consumer group covering office retailers ..."
      Joined Reuters:
      Dec. 1, 2003
      Awards:
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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