Federal Deposit Insurance Corporation (FDIC)
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
EC and FDIC team up to tackle G-sifi resolution
European Commission and Federal Deposit Insurance Corporation establish working group to co-ordinate G-sifi resolution efforts
FDIC director backs Haldane on leverage ratio
Jeremiah Norton follows Bank of England’s Andrew Haldane in criticising Basel III’s risk-weighted assets, and says a higher leverage ratio would be a simple, effective solution
BoE and FDIC co-operate on bail-in plans
US deposit insurer and UK central bank release plans for resolution of global systemically important banks, focusing on a ‘top-down’ approach to maintain viability long enough for restructuring
FDIC name new leadership
President Obama names acting-chairman Martin Gruenberg as the new FDIC head and ex-Kansas City Fed president Thomas Hoenig as his number two
Robert Pringle’s Viewpoint: How governments are undermining world finance
Central bankers need to forcefully express their concerns about the unintended consequences of new regulatory policies
US regulators release capital estimation tools for community banks
US federal banking regulators offer capital estimation tools to help community banks assess impact of proposed capital rules before comment period closes
Hoenig supports bank ring-fencing in the US
Federal Deposit Insurance Corporation director says public trust in financial institutions and government must be rebuilt; wants banks' safety net retracted