Browsing: Too big to fail

Policy

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.”

Economy

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).

Community Banking

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.”

Newsbytes

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.

Newsbytes

The Basel, Switzerland-based Financial Stability Board today updated its list of global systemically important banks subject to supplemental loss absorbency requirements.

Newsbytes

The Federal Reserve on Friday proposed a new set of requirements for the eight U.S. global systemically important banks to increase their total loss absorbing capacity, or TLAC, by at least 60 percent.

1 2