Federal regulators would provide similar protections for uninsured depositors at smaller banks as they did for Silicon Valley Bank and Signature Bank, if there is evidence the failures of those smaller banks would pose a larger contagion risk, Treasury Secretary Janet Yellen said this week.
Browsing: Too big to fail
Hsu said frameworks for analyzing bank mergers need updating, but a merger moratorium would prevent deals that increase competition, better serve communities better, and enhance resiliency.
Speaking at an industry event today, Acting Comptroller Michael Hsu warned that “there is a gap with regards to large regional banks” when it comes to resolvability, and signaled his desire for additional reforms to ensure financial stability in the event of a large regional bank failure.
As the Basel, Switzerland-based Financial Stability Board begins the process of evaluating whether post-financial crisis regulatory efforts are reducing the systemic and moral hazard risks associated with systemically important banks, ABA said “that the prospect of TBTF with regard to banking organizations has been addressed in the United States by these regulatory actions and the banking industry’s concomitant efforts.”
The Basel, Switzerland-based Financial Stability Board is seeking feedback from industry stakeholders on the post-crisis regulatory reforms for “too big to fail” banks.
The House today passed the Financial Choice Act by a mostly party line vote of 233 to 186 (one Republican, Rep. Walter Jones of North Carolina, voted against).
Testifying before the Senate Banking Committee today, Treasury Secretary Steven Mnuchin said he is hoping to collaborate with senators on financial regulatory relief and housing finance reform.
House Financial Services Committee Chairman Jeb Hensarling (R-Texas) today announced plans for new legislation that he called a “market-based, equity financed Dodd-Frank off-ramp.”
In an op-ed in the Orlando Sentinel this weekend, Florida Bankers Association president and CEO Alex Sanchez called on political candidates to work for bipartisan regulatory relief that would build up regional and small banks, rather than focusing on the destruction of large institutions they consider “too big to fail.”
The federal banking agencies’ proposal for the eight U.S. global systemically important banks to increase their total loss absorbing capacity, or TLAC, would create a $363 billion shortfall in eligible TLAC and long-term debt — plus $622 trillion in unrelated liabilities — by Jan. 1, 2019, a massive gap that would “be very expensive and perhaps impossible to cure…promptly,” according to ABA and several other trade groups in a comment letter Friday.