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Despite considerable progress, she said, "inflation continues to be too high, and I expect it will likely be appropriate for the (Fed) to raise rates further and hold them at a restrictive level for some time." The Fed targets 2% inflation. Given that progress, U.S. central bankers last month opted to keep the policy rate in its current 5.25%-5.50% range even as most signaled another rate hike would likely be needed before year's end. Speaking at a separate event in New York on Monday, Fed Vice Chair for Supervision Michael Barr said he believes rates are now "at or very near" a sufficiently restrictive level. The same Fed forecasts also show policymakers as a group expect stronger economic growth and a stronger job market than they had expected just three months earlier.

Persons: Michelle Bowman, Ann Saphir, Michael Barr, Barr, Jerome Powell, John Williams, Bowman, Thomas Barkin, we've, Dan Burns, Pete Schroeder, Anna Driver, Andrea Ricci Organizations: U.S . Federal, Hoover Institution, REUTES, . Federal Reserve, Fed, New, New York Fed, Richmond Fed, Thomson Locations: Palo Alto , California, U.S, New York, York , Pennsylvania

☆ Fed's Bowman: Expects it to be appropriate to raise rates further
▼ + stars: | 2023-10-02 | by ( ) www.reuters.com time to read: +2 min

U.S. Federal Reserve Governor Michelle Bowman gives her first public remarks as a Fed policymaker at an American Bankers Association conference in San Diego, California, U.S., February 11 2019. Bowman, in prepared remarks to a banking conference, said inflation remains too high and expects progress in lowering it to be slow "given the current level of monetary policy restraint." Bowman again also took issue with a slate of regulatory proposals being considered by the Fed and other U.S. bank overseers. She said regulators seem to be engaging in "heavy-handed" supervision and should consider if such an approach is appropriate. Reporting By Dan Burns and Pete Schroeder; Editing by Anna DriverOur Standards: The Thomson Reuters Trust Principles.

Persons: Michelle Bowman, Ann Saphir, Bowman, Dan Burns, Pete Schroeder, Anna Driver Organizations: Federal, American Bankers Association, REUTERS, Energy, Market, Fed, Thomson Locations: San Diego , California, U.S

A customer leaves after speaking with FDIC representatives inside of the Silicon Valley Bank headquarters in Santa Clara, California, U.S., March 13, 2023. REUTERS/Brittany Hosea-Small Acquire Licensing RightsCompanies Silicon Valley Bank FollowWASHINGTON, Sept 28 (Reuters) - The leadership of Silicon Valley Bank and its government supervisors failed to quickly recognize risks looming in the firm before its March failure, according to a report from the U.S. Federal Reserve's inspector general. Specifically, the IG said Fed examiners struggled to transition from monitoring the bank as a smaller regional firm to stricter oversight as it rapidly grew in size, applying insufficient resources and expertise to monitoring its activities. Addressing supervisory shortcomings is a top priority for Fed Vice Chair for Supervision Michael Barr and other financial regulators in the coming months. In response to Thursday's IG report, the Fed said it generally agreed with the findings and was already working to implement several of its recommendations.

Persons: Brittany Hosea, ineffectively, Michael Barr, Barr, Pete Schroeder, Mark Porter, Marguerita Choy Organizations: Bank, REUTERS, WASHINGTON, Silicon Valley Bank, U.S, U.S . Federal, IG, Thomson Locations: Santa Clara , California, U.S, U.S .

The Treasury Department subsequently kicked off a rule-making process to implement the order, and financial firms have been rushing to meet a Sept. 28 to provide input. "It could apply to companies that are outside of China but are subsidiaries of Chinese companies or controlled by a Chinese person." While the U.S. already has restrictions on some Chinese investments in the U.S. and U.S. investments in China, the order creates a new program. The program proposes exempting publicly traded securities and index and mutual funds, but financial firms want those securities to be more tightly defined. Financial firms say they support the administration's national security goals but worry about increased liability and the economic costs of restricting capital flows.

Persons: Florence Lo, Joe Biden, Timothy Keeler, Mayer Brown, Jen Fernandez, Sidley Austin, Jay Clayton, Sullivan, Cromwell, Keeler, Peter Matheson, Fernandez, Pete Schroeder, Carol Mandl, Michelle Price, Deepa Babington Organizations: REUTERS, WASHINGTON, Treasury Department, Foreign Investment, Treasury, Former Securities and Exchange, DE, Financial, U.S, Securities Industry, Financial Markets Association, Thomson Locations: China, U.S, United States

☆ Canada House Speaker Apologizes for Recognition of Veteran Who Fought for Nazis
▼ + stars: | 2023-09-24 | by ( Sept. | At P.M. | ) www.usnews.com time to read: +2 min

By Pete SchroederWASHINGTON (Reuters) - The speaker of Canada's House of Commons on Sunday apologized for praising an individual at a parliamentary meeting who served in a Nazi unit during World War II. Two days earlier, Speaker Anthony Rota had recognized 98-year old Yaroslav Hunka as a "Ukranian hero" before the Canadian Parliament. Rota in a statement took responsibility for what was characterized as an oversight, calling the initiative "entirely my own." The recognition came following a visit by Ukrainian President Volodymyr Zelenskiy, who thanked Canada for its assistance in his country's war against Russia. Since their forces entered Ukraine, Russian officials have drawn parallels with the struggle against Nazism during World War II.

Persons: Pete Schroeder WASHINGTON, Anthony Rota, Yaroslav Hunka, Hunka, Simon Wiesenthal, Rota, Volodymyr Zelenskiy, Zelenskiy's, Pete Schroeder, Mark Porter Organizations: Canada's, Nazi, Waffen Grenadier Division, Simon Wiesenthal Center, Canada, Russia, Ukrainian, Waffen, Nazism Locations: Ukraine

Liberal Member of Parliament Anthony Rota speaks after being re-elected as Speaker of the House of Commons on Parliament Hill in Ottawa, Ontario, Canada November 22, 2021. Two days earlier, Speaker Anthony Rota had recognized 98-year old Yaroslav Hunka as a "Ukranian hero" before the Canadian Parliament. Rota in a statement took responsibility for what was characterized as an oversight, calling the initiative "entirely my own." The recognition came following a visit by Ukrainian President Volodymyr Zelenskiy, who thanked Canada for its assistance in his country's war against Russia. Since their forces entered Ukraine, Russian officials have drawn parallels with the struggle against Nazism during World War II.

Persons: Anthony Rota, Blair Gable, Yaroslav Hunka, Hunka, Simon Wiesenthal, Rota, Volodymyr Zelenskiy, Zelenskiy's, Pete Schroeder, Mark Porter Organizations: REUTERS, Rights, Canada's, Nazi, Waffen Grenadier Division, Simon Wiesenthal Center, Canada, Russia, Ukrainian, Waffen, Nazism, Thomson Locations: Ottawa , Ontario, Canada, Ukraine

The Citadel Securities logo is seen at their offices in Manhattan, New York City, U.S., October 31, 2022. REUTERS/Andrew Kelly Acquire Licensing RightsSept 22 (Reuters) - The U.S. Securities and Exchange Commission on Friday said Citadel Securities LLC, a Miami-based broker-dealer, had agreed to pay $7 million to settle charges it incorrectly handled millions of orders and violated short-selling rules. The SEC in a statement said Citadel Securities over a five-year period had incorrectly marked millions of orders, denoting short sales as long sales and vice versa. It said those incorrect markings resulted from a coding error in the firm's automated trading system. A Citadel spokesperson said the error was identified and addressed by the firm more than three years ago.

Persons: Andrew Kelly, Mark Cave, Rami Ayyub, Pete Schroeder, Carolina, Kirsten Donovan, Mark Porter Organizations: Citadel Securities, REUTERS, U.S . Securities, Exchange Commission, Citadel Securities LLC, SEC, Citadel, Thomson Locations: Manhattan , New York City, U.S, Miami

☆ US government shutdown: What is it and who would be affected?
▼ + stars: | 2023-09-21 | by ( ) www.reuters.com time to read: +7 min

Contracts awarded prior to the shutdown would continue, and the Pentagon could place new orders for supplies or services needed to protect national security. NATIONAL PARKS AND NATURAL RESOURCESIt's not clear how the United States' 63 national parks would be affected. They remained open during the 2018-2019 shutdown, through restrooms and information desks were closed and waste disposal was halted. WHITE HOUSEIn 2018-2019 shutdown, the White House furloughed 1,100 of 1,800 staff in the Executive Office of the President. Some offices, such as the National Security Council, continued at full strength, while others like the Office of Management and Budget were scaled back sharply.

Persons: Kevin Wurm, Lockheed Martin, Donald Trump, Pete Buttigieg, Pell, Andy Sullivan, Pete Schroeder, Howard Schneider, Moira Warburton, Scott Malone, Alistair Bell Organizations: U.S, Capitol, REUTERS, Workers, Pentagon, Boeing, Lockheed, Raytheon, The, National Nuclear Security Administration, FBI, Drug Enforcement Administration, Service, Border Patrol, Coast Guard, Federal Trade, AFFAIRS U.S, National Institutes of Health, National Science Foundation, National Oceanographic, Atmospheric Administration, NASA, Space, Disease Control, Prevention, Food and Drug Administration, Securities, Exchange, Commodities, Futures Trading, Federal Reserve, Federal Deposit Insurance Corporation, Currency, Social Security Administration, Veterans Administration, Federal Emergency Management Agency, Education Department, White, Small Business Administration, National Labor Relations, National Security Council, Management, U.S . Postal, Thomson Locations: Washington , U.S, United States

The groups argued that banks cannot properly respond to the proposal, which would require lenders to hold more cash to absorb losses, without that analysis. The Fed drafted the rules with the Federal Deposit Insurance Corp (FDIC) and Office of the Comptroller of the Currency (OCC). The "Basel Endgame" proposal implements international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis. The U.S. central bank has estimated it will increase industry capital requirements by $170 billion. "These capital rules will have an impact on economic growth and that will affect large businesses and small businesses and their access to capital."

Persons: Rick Wilking, Goldman Sachs, Morgan Stanley, Banks, David Solomon, Jamie Dimon, Morgan Stanley's, Dan Simkowitz, Pete Schroeder, Saeed Azhar, Lananh Nguyen, Tatiana Bautzer, Michelle Price, Paul Simao, Deepa Babington Organizations: Deposit Insurance Corporation, REUTERS, Rights, Federal Reserve, JPMorgan Chase, Citigroup, APA, Fed, Federal Deposit Insurance Corp, Currency, OCC, Banking, Reuters, JPMorgan, FDIC, Republican, Financial, Bank Policy Institute, American Bankers Association, Financial Services, Institute of International Bankers, Securities Industry, Financial Markets Association, Chamber of Commerce, Thomson Locations: Westminster , Colorado, U.S, Washington

REUTERS/Evelyn Hockstein/File Photo Acquire Licensing RightsWASHINGTON, Sept 8 (Reuters) - The Federal Reserve's top regulatory official said on Friday the central bank is "a long way" from any decision on whether it would issue its own digital currency, and added it would not do so without official support in Washington. Fed Vice Chair for Supervision Michael Barr said while officials are investigating a central bank digital currency (CBDC), the Fed was far from any decision. "Of course, investigation and research are very different from decision-making about next steps in terms of payments system development, and we are a long way from that." Barr's comments echo those of Fed Chair Jerome Powell, who also has said the Fed would not move to issue a digital currency without explicit authorization from Congress. It is important to get the legislative and regulatory framework right before significant risks emerge," he said.

Persons: Michael Barr, Evelyn Hockstein, Barr, Jerome Powell, Pete Schroeder, Hugh Lawson, Andrea Ricci Organizations: Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, Rights, Federal, U.S ., Thomson Locations: Washington , U.S, Washington, Philadelphia

☆ FDIC says it should have supervised First Republic more closely
▼ + stars: | 2023-09-08 | by ( Pete Schroeder | ) www.reuters.com time to read: +3 min

FILE PHOTO: A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. However, the FDIC added that its supervisors were too “generous” in gauging some of First Republic’s risks, notably around interest rates and uninsured deposits. First Republic was subsequently seized by the FDIC and most of its assets sold to JPMorgan Chase. Similarly, the FDIC found in its April post-mortem of the Signature failure that the agency lacked resources to properly supervise the bank as management pursued an overly aggressive growth strategy. “Both regulation and supervision must be strengthened,” said CEO Dennis Kelleher of Better Markets, a group favoring tougher regulation, in response to the report.

Persons: Mike Segar, “, Friday’s, ”, Dennis Kelleher Organizations: WASHINGTON, Federal Deposit Insurance Corp, Republic, First, First Republic Bank, REUTERS, FDIC, Silicon Valley Bank, JPMorgan Chase, Bank, Federal Reserve, Congress, Better Locations: First Republic, Midtown Manhattan, New York City , New York, U.S, California, Republic, Silicon, New York

☆ FDIC says supervisors could have been more aggressive before First Republic's failure
▼ + stars: | 2023-09-08 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

FILE PHOTO: A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. However, it added bank supervisors were too “generous” in gauging some of its risks, notably around interest rates and a high level of uninsured deposits. First Republic’s collapse, which saw the bank seized by regulators and most of its assets sold to JPMorgan Chase, was the second largest bank failure in American history. It however said the bank likely would have been more resilient to the spreading panic had supervisors criticized bank management practices sooner. The FDIC ultimately found that its supervision team was timely in examining First Republic and producing its findings.

Persons: Mike Segar, JPMorgan Chase, “ Organizations: WASHINGTON, Republic, First, First Republic Bank, REUTERS, Deposit Insurance Corporation, Silicon Valley Bank, JPMorgan, FDIC Locations: U.S, First Republic, Midtown Manhattan, New York City , New York, Silicon, Washington

REUTERS/Jason Reed/File Photo Acquire Licensing RightsWASHINGTON, Sept 7 (Reuters) - U.S. bank profits were largely flat in the second quarter of 2023 after accounting for the impact of three large failed bank acquisitions, the Federal Deposit Insurance Corporation reported Thursday. The bank regulator said industry profits dipped 11.3% to $70.8 billion in the second quarter, but that was primarily due to the impact of the bank failures and ensuing acquisitions. Accounting for those events, bank profits were up 5.7% compared to a year prior. The FDIC said banks saw unrealized deposits on securities increase 8.3% in the second quarter, rising to $558.4 billion. U.S. bank deposits declined for the fifth straight quarter, but only fell 0.5% in the second quarter compared to a record 2.5% decline in the first quarter.

Persons: Jason Reed, Martin Gruenberg, JPMorgan Chase, Pete Schroeder, Chizu Organizations: Federal Deposit Insurance Corp, REUTERS, Rights, Federal Deposit Insurance Corporation, Silicon Valley Bank, First Republic Bank, JPMorgan, Thomson Locations: Washington, Silicon, U.S

Companies U.s. Commodity Futures Trading Commission FollowWASHINGTON, Sept 7 (Reuters) - A U.S. District Court judge has ordered a South African to pay over $1.7 billion in restitution to victims for operating a fraudulent commodity pool worth roughly that amount in bitcoin, the Commodity Futures Trading Commission announced Thursday. The order against Mirror Trading International Proprietary Limited (MTI) resolves an enforcement case the CFTC had filed against the company and its CEO, Cornelius Johannes Steynberg. In a June enforcement order, the CFTC claimed that MTI solicited bitcoin online from thousands of people to purportedly operate a commodity pool. In reality, only a small portion of the pooled bitcoin was ever invested, at a loss, and the rest was "misappropriated," according to the CFTC. The company ultimately filed for bankruptcy in 2021, shortly after which South African authorities launched a fraud investigation.

Persons: Cornelius Johannes Steynberg, MTI, Paul Grant, Caitlin Webber, Chizu Organizations: U.s . Commodity Futures, U.S, Futures Trading, Mirror, Proprietary, CFTC, Thomson Locations: African

WASHINGTON, Sept 5 (Reuters) - The U.S. Federal Deposit Insurance Corporation (FDIC) is seeking buyers for the $33 billion commercial real estate (CRE) loan portfolio of failed New York lender Signature Bank, it said on Tuesday. The majority of the portfolio comprises multi-family properties primarily located in New York City, the regulator said, adding that it would be marketing the asset over the next three months. Within the CRE portfolio is about $15 billion of loans secured by residences that are rent stabilized or controlled. New York City and State housing authorities, as well as community groups, are providing input to the FDIC as it begins marketing. The FDIC said it expects to complete any portfolio sales by the end of 2023.

Persons: Michelle Price, Pete Schroeder, David Goodman Organizations: U.S, Federal Deposit Insurance Corporation, Signature Bank, FDIC, York Community Bancorp, New, Thomson Locations: New York, New York City, State

It follows a tumultuous spring for regional banks in which Silicon Valley Bank and two other lenders collapsed, forcing regulators to backstop deposits to stave off a broader panic. The proposal, which is subject to industry feedback, would see banks raise their long-term debt issuance by roughly 25%, or $70 billion, according to the FDIC. The agency said banks would have three years from the rule's adoption to meet the new standard. 'COMPELLING CASE'Each bank's debt requirement will be based on their risk-weighted assets, total assets, or total leverage, depending on which number is highest. In a speech previewing the proposals this month, Gruenberg said recent bank failures made "a compelling case" for regulators to impose tougher rules on regional firms.

Persons: Brian Snyder, Martin Gruenberg, Matthew Bisanz, Mayer Brown, “ It’s, Greg Baer, Gruenberg, Ian Katz, Pete Schroeder, Megan Davies, Philippa Fletcher, Andrea Ricci Organizations: First Republic Bank, REUTERS, Rights, Federal Deposit Insurance Corporation, Federal Reserve, Wall, Bank, FDIC, Financial Services Group Inc, Fifth Third Bancorp, Citizens Financial Group Inc, Industry, Bank Policy Institute, Silicon Valley Bank, JPMorgan Chase, FDIC's, Insurance Fund, Capital Alpha Partners, Thomson Locations: Boston , Massachusetts, U.S, Silicon

The new requirement would bring large regional banks more in line with the largest global banks, which already have their own debt requirement. The proposal follows a tumultuous spring for regional banks, which saw three collapse, forcing regulators to backstop deposits to stave off a broader panic. The proposal would mean banks have to raise their long-term debt issuance by roughly 25%, or $70 billion, according to the FDIC. “These banks will have to go into the market issuing capital to meet the capital proposal and then issuing long-term debt to meet the long-term debt proposal," said Matthew Bisanz, a partner at Mayer Brown. The proposed rules were approved by the FDIC at a meeting Tuesday, giving the industry the opportunity to critique the approach.

Persons: Brian Snyder, Martin Gruenberg, Matthew Bisanz, Mayer Brown, Gruenberg, JPMorgan Chase, Ian Katz, ” Rob Nichols, Pete Schroeder, Megan Davies, Philippa Fletcher, Andrea Ricci Organizations: First Republic Bank, REUTERS, Rights, U.S, Federal Deposit Insurance Corporation, FDIC, Financial Services Group Inc, Fifth Third Bancorp, Citizens Financial, Silicon Valley Bank, JPMorgan, FDIC's, Insurance Fund, Capital Alpha Partners, Federal Reserve, American Bankers Association, Thomson Locations: Boston , Massachusetts, U.S, Silicon

REUTERS/Kevin Lamarque/File Photo Acquire Licensing RightsWASHINGTON, Aug 29 (Reuters) - A top U.S. banking regulator is set on Tuesday to propose heightened rules to ensure regional banks can be safely dissolved in times of stress. Now, regulators are looking to toughen their rules, particularly for regional banks like PNC Financial Services Group Inc and Citizens Financial Group Inc."The failure of three large regional banks this spring...demonstrated clearly the risk to financial stability that large regional banks can pose," said FDIC Chairman Martin Gruenberg in a speech earlier this month previewing the proposals. The regulator is also set to propose an overhaul to "living will" rules for banks, which require firms to detail how they could be safely taken apart after failing. As banks failed last spring, the FDIC was unable to find immediate buyers for some firms, such as Silicon Valley Bank. The banking industry is already pushing back against the upcoming proposal and similar efforts, calling them unjustified and economically harmful.

Persons: Martin Gruenberg, Kevin Lamarque, Gruenberg, JPMorgan Chase, Ian Katz, ”, Rob Nichols, Pete Schroeder, Megan Davies, Andrea Ricci Organizations: Deposit Insurance, Financial, Valley Bank, Signature Bank, Capitol, REUTERS, Rights, Federal Deposit Insurance Corporation, Financial Services Group Inc, Citizens Financial, Inc, FDIC, Silicon Valley Bank, First Republic Bank, JPMorgan, FDIC’s, Insurance Fund, Capital Alpha Partners, American Bankers Association, Thomson Locations: Washington , U.S, Silicon

REUTERS/Fabrizio Bensch/File Photo Acquire Licensing RightsWASHINGTON, Aug 21 (Reuters) - PayPal's (PYPL.O) stablecoin is likely to succeed where Facebook's failed, thanks to the payment giant's standing in Washington and policymakers' greater understanding of the issues in the last three years. "From a policy perspective, there is a seismic difference between Facebook's Libra and PayPal's stablecoin," said Isaac Boltansky, director of policy research for brokerage BTIG. Dan Dolev, a senior analyst at Mizuho, said PayPal USD is not a game-changer for PayPal investors. When Facebook unveiled Libra, a stablecoin whose operations were based in Switzerland and which was pegged to a basket of currencies, executives made no secret of their ambitions. Facebook rebranded Libra, scaled it back and moved the project to the United States, in a bid to win U.S. regulatory approval.

Persons: Fabrizio Bensch, stablecoin, Facebook's, Christopher Giancarlo, PayPal's, Isaac Boltansky, Dan Schulman, Dan Dolev, Maxine Waters, Joe Biden's, Janet Yellen, Yellen, TerraUSD, stablecoins, There's, Jack Fletcher, Patrick McHenry, Hannah Lang, Andrea Shalal, Pete Schroeder, Niket, Michelle Price, Matthew Lewis Organizations: PayPal, REUTERS, Rights, U.S ., Facebook, U.S . Commodity Futures Trading Commission, Federal Reserve, Meta, Paxos Trust, New York State Department of Financial Services, Mizuho, Financial Services, Treasury, Congress, prudential, Republican, Thomson Locations: Berlin, Germany, Washington, U.S, Switzerland, United States, transact, stablecoins, Bengaluru

Global shares were stuck around two-month lows and Wall Street indexes closed nearly flat and narrowly mixed. Yields on benchmark 10-year U.S. Treasuries stepped back after flirting with 16-year highs earlier in the week. Investors expected the Fed may hold interest rates higher for longer as the U.S. economy continued to show strength. Attention now turns to the Fed and other top central banks' annual gathering in Jackson Hole, Wyoming. Investors will scrutinise a speech from Fed Chair Jerome Powell next Friday for clues about the interest rate outlook.

Persons: Brendan McDermid, Jackson Hole WASHINGTON, Treasuries, Blake Emerson, Jerome Powell, Powell, Brent, Toby Chopra, Mark Potter, Nick Macfie, Diane Craft, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Jackson, Treasury, Federal Reserve, Global, Dow Jones, Nasdaq, JP Morgan Private Bank, Federal, Securities, U.S, Thomson Locations: New York City, U.S, Jackson Hole, Jackson Hole , Wyoming, Japan

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 24, 2023. Benchmark 10-year yields reached 4.312% in trading and tested October's 4.338%, before moving lower to 4.29%. Tighter credit conditions will eventually dampen economic activity and markets are choppy from the uncertainty," said Jeffrey Roach, chief economist for LPL Financial. Wall Street was mixed in the first half of the trading day before accelerating losses as the session ended. Brent crude was up over 1% earlier in the day before settling up 0.35% at $83.74 a barrel.

Persons: Brendan McDermid, Yen, Jeffrey Roach, Bill Adams, Brent, Ankur Banerjee, Alun John, Anisha, Sonali Paul, Angus MacSwan, Chizu Nomiyama, Nick Macfie, Cynthia Osterman Organizations: New York Stock Exchange, REUTERS, Treasury, Federal, LPL Financial, Dow Jones, Nasdaq, U.S . Labor Department, Comerica Bank, Zhongzhi Enterprise Group, Thomson Locations: New York City, U.S, CHINA, China, China's, Singapore, London, Bengaluru

The rule, which would implement a 2017 agreement by global regulators, aims to overhaul how banks gauge their riskiness, and in turn how much money they must keep on hand. Industry opponents have already begun to criticize the plan as banks seek to soften, delay, or otherwise derail the government's long-planned effort. The proposal would see U.S. regulators implement a previous global agreement via the Basel Committee on Banking Supervision. "Bank capital is critical," said Dennis Kelleher, president and CEO of Better Markets, which advocates for tougher financial rules. "However, maximizing Wall Street’s bonuses depends on minimizing capital and that’s why Wall Street fights to prevent regulators from requiring them to have enough capital."

Persons: it’s, Ian Katz, JPMorgan Chase, Morgan Stanley, Michael Barr, Barr, Joe Biden, Dennis Kelleher, Pete Schroeder, Susan Heavey Organizations: Federal Deposit Insurance Corporation, Federal, Industry, Washington, Capital Alpha Partners, JPMorgan, Banking Supervision, Citizens Financial, Bank, Better, Thomson Locations: U.S, Basel, Huntington, that’s

☆ US bank regulators announce sweeping proposals on capital rules
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +4 min

WASHINGTON, July 27 (Reuters) - U.S. regulators unveiled a sweeping overhaul Thursday that would direct banks to set aside billions more in capital to guard against risk. If fully implemented, the proposal would raise capital requirements for large banks by an aggregate 16% from current levels, with the brunt felt by the largest and most complex firms, regulators said. Here are key quotes about the proposal:FINANCIAL SERVICES FORUM CEO KEVIN FROMER"There is no justification for significant increases in capital at the largest U.S. ANDY DUANE, ATTORNEY AT POLUNSKY BEITEL GREEN "Raising capital requirements could see regional banks shift away from mortgage lending. Even larger bank lenders could continue to retreat from mortgage lending or impose sharp increase in fees passed along to borrowers."

Persons: KEVIN FROMER, RICK MECKLER, CHERRY, MAYRA RODRIGUEZ VALLADARES, KENNETH BENTSEN, BRIAN MOYNIHAN, ANDY DUANE, GREG BAER, Pete Schroeder, Matt Tracy, Tatiana Bautzer, Nupur Anand, Sinead Carew, Lananh Nguyen, Nick Zieminski Organizations: Regulators, NEW VERNON, NEW, MRV, AMERICA, FOX, Thomson Locations: U.S, CHERRY LANE, NEW JERSEY, Basel, United States, Washington, New York

☆ U.S. bank regulators unveil proposal to hike bank capital
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, July 27 (Reuters) - U.S. bank regulators released a proposal Thursday that would direct the nation's largest banks to raise their capital, arguing a larger cushion is needed to ensure stability. The proposal, if implemented, would raise capital an aggregate 16% for larger banks, and also apply several stricter rules to banks with over $100 billion in assets. The sweeping plan would overhaul how banks gauge risk in numerous areas, and in turn how much capital they must hold in reserve. Reporting by Pete Schroeder; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

Persons: Pete Schroeder, Chizu Organizations: Thomson

[1/3] FILE PHOTO: A sign is displayed on the Morgan Stanley building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File PhotoNEW YORK, July 25 (Reuters) - U.S. banking giants may take up to four years to set aside profits to meet new capital rules, according to a report by Morgan Stanley. U.S. banking regulators will on Thursday unveil a sweeping proposal for stricter bank capital requirements known as the "Basel III endgame" aimed at ensuring the stability of big banks under international rules rolled out after the 2008 financial crisis. Holding more RWA will require banks to set aside more capital under the new standards. Most of the need to raise capital would come from assessments of the bank's operational risks and their trading books.

Persons: Morgan Stanley, Lucas Jackson, Betsy Graseck, Goldman Sachs, JPMorgan Chase, Morgan, Michael Barr, Tatiana Bautzer, Pete Schroeder, Lananh Nguyen, Chris Reese Organizations: New York U.S, REUTERS, Citigroup, JPMorgan, Bank of America, Federal, Federal Reserve, Federal Deposit Insurance Corporation, Thomson Locations: New York, Basel, Washington

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