The regulators defended decisions they made both before and after the collapse of SVB, particularly their unanimous vote to invoke the systemic risk exception to the FDIC's deposit limit.
The FDIC's Gruenberg said regulators need to reassess how they look at uninsured deposits when calculating a bank's risk profile. "It's interesting many of my Republican colleagues are now so eager for bank regulators to crack down on too many risks," Brown, D-Ohio, said in closing statements. "I hope they remember that when it comes time to empower regulators and strengthen guardrails, including protecting the independent funding of financial regulators."
The first would reverse a Trump-era bill that weakened oversight of medium-sized banks. The second would create an Inspector General position within the Federal Reserve, and the third would prohibit executives at publicly traded companies from selling stock options for three years.include a request to the Justice Department to investigate any illegal activity by executives at the two failed banks.
"It's important to note that we can't regulate competence," McHenry said at an American Bankers Association conference in Washington last week. "Management of institutions need to be competent, boards of directors need to be competent. We can't legislate that either in the financial sector or among financial institutions management, nor with the regulators."Sen.
"We find problems like the ones that you just described, we're going to say clearly and describe what we've done," Barr told Tester.Warren presses Barr, Gruenberg and Liang to agree tougher banking rules are needed Michael Barr, vice chair for supervision at the US Federal Reserve, speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, DC, US, on Tuesday, March 28, 2023.Fed Vice Chair Barr told Sen. Catherine Cortez Masto, D-Nev.
"Fundamentally the bank failed because its management failed to appropriately address clear interest rate risks and clear liquidity risks," said Barr, who is leading the review into the bank's failure. FDIC Chairman Gruenberg said the agency has "significant authority under the law" to impose penalties and restitution from individuals and businesses. The FDIC will "pursue this as expeditiously as we can," depending on what investigators find, he said.
"We must evolve our understanding of banking in light of changing technologies and emerging risks," he said. He said the two bank failures illustrate the outsized impact banks with more than $100 billion in assets can have on the broader system. "The prudential regulation of these institutions merits serious attention, particularly for capital, liquidity, and interest rate risk," he added.
In Indian Bank now KCC renewal process not done as per norms. It may leads sudden increase in NPA after two to three years.
Exactly and we bailed them out🤮
Exactly and they were spending all of their time on DEI initiatives instead.
Its SIMPLE =the executives made a profit !!! $$$$$$$$$$$$$$$$$ its called Corruption !!! WHY is the public FOOLS
What happens when u fractionalize bank reserves, any idi ot knows
shouldn’t the regulators also be forced to give back their income as well for a job so poorly done
Grandstanding. That would do nothing to prevent a bank run, and if anything, takes away incentives for executives to return value to shareholders.
What have they been doing since 2008? They have had 15 years to do their jobs right & failed.
Graph Korea