What should the Fed do about midtier banks? Plus, bank regulation's future
The Federal Reserve can adjust its tools for regulating midtier banks. The questions is when and how they will use them. Photo: Bloomberg

What should the Fed do about midtier banks? Plus, bank regulation's future

The Fed has a lot of options for adjusting midtier bank regulation : After the failure of two banks between $100 billion and $250 billion of assets, many are asking regulators to change their oversight practices for these banks. The Federal Reserve Board has a wide berth to make a wide array of changes.

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Watch: What's next in banking regulation? Bank regulatory lawyer Rodgin Cohen of Sullivan & Cromwell LLP discusses what's ahead for banks and regulators in this Arizent Leaders Forum video interview.

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Q&A: Rep. French Hill on the aftermath of Silicon Valley Bank's failure : The Arkansas congressman, a leading Republican on the House Financial Services Committee and a former community bank CEO, said while he doesn't believe blanket expanding deposit insurance is warranted, different premium structures for covering deposits would be "worthwhile."

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Greater Boston mutual banks to merge, create $4 billion institution : 1831 Bancorp and South Shore Bank plan to join forces to bolster their collective resources and competitive standing in New England's largest market.

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A 'green' digital debit card concedes the need for plastic : FutureCard, which originally resisted offering a physical card, is adding a recycled-plastic version to reach a wider audience.

Is your bank effectively driving automation??Take our 10-minute survey ?and then watch for upcoming coverage in American Banker on how your strategy compares to competitors.

Bob Taylor

Commercial Mortgage Broker with Gparency

4 个月

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Jack Mullen

50 years of high level experience with major FI’s, eg: Citibank and Chase, as an MD in derivatives, interest rate and FX risk management, fixed income management and prop trading. Also, served on the Board of Bank OZK

1 年

This crisis is a reminder for bank customers to not keep deposits at a bank that exceed the FDIC insurance limit. Sounds like 85% of SVB’s deposits were uninsured and this is what led to the stampede to get their out of the bank on Friday. $40 billion was withdrawn in one day. The bank was taken over by the FDIC. This crisis is also a reminder that specialty banks like SVB pose extra risks from a non diversified customer base. Clearly, the combination of the above two risk should have resulted in management, The board and the regulators not permitting such large amounts of these short term and uninsured deposits to be invested in long term fixed rate bonds at the absolute bottom of the interest rate cycle. The banks lost about $20 billion in these bonds which is more than their book equity. “this is Stupid cubed”

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Chad Fooshee

Founder, CEO, and Financial/ Digital Transformation Executive

1 年

Thanks for sharing American Banker. For starters, they should start with consulting well run mistier banks.

CHESTER SWANSON SR.

Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan

1 年

Thanks for sharing.

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