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☆ White House Considers Two Key Nominations at the Fed
▼ + stars: | 2023-05-01 | by ( Jeanna Smialek | Jim Tankersley | ) www.nytimes.com time to read: +1 min

WASHINGTON — President Biden is closing in on two nominations for the Federal Reserve’s Board of Governors that would give the Fed its first Latina board member and its second ever Black vice chair, according to several people familiar with the process. Mr. Biden is close to nominating Adriana Kugler, an economist with Colombian heritage who is the U.S. executive director of the World Bank, to the Fed’s only remaining open governor position. In a corresponding move, he is likely to elevate Philip Jefferson, an economist who was confirmed overwhelmingly to the board when Mr. Biden nominated him to an open governor position, to be the board’s vice chair. A White House spokesman declined to comment on Monday. If confirmed by the Senate, Ms. Kugler would fill a governor position recently vacated by Lael Brainard, who became director of the White House National Economic Council in February.

☆ S.Korea finmin: S.Korea, Japan, China cooperation more important as world economy at inflection point
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: 1 min

INCHEON, South Korea, May 2 (Reuters) - South Korea's finance minister said on Tuesday that the trilateral cooperation between South Korea, Japan and China has became more important as the global economy stands at an inflection point. Minister Choo Kyung-ho said such cooperation would not only help the three countries, which account for more than 20% of the world economy, but also the Asian region and the world, during his opening remarks at a trilateral meeting of finance ministers and central bank governors. The countries' economic leaders met on the sidelines of the Asian Development Bank's annual meeting of the board of governors held in Incheon, South Korea. Reporting by Jihoon Lee; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ The Fed Failed but Wants More Power
▼ + stars: | 2023-04-28 | by ( The Editorial Board | ) www.wsj.com time to read: +1 min

Federal Reserve Board of Governors Vice Chair for Supervision Michael Barr testifies at a House Financial Services Committee hearing on Capitol Hill in March. Photo: Andrew Harnik/Associated PressAn iron law of the modern administrative state is that the solution to regulatory failure is always to give regulators more power. That’s the key to understanding Federal Reserve Vice Chair for Supervision Michael Barr ’s autopsy, released Friday, of Silicon Valley Bank’s (SVB) failure. The report offers a token mea culpa for not having responded fast enough to troubles at the bank. But that’s mainly a deflection from the report’s main purpose, which is to protect the Fed and bolster the Biden Administration’s financial regulatory agenda.

☆ Fed’s SVB review finds there’s no “I” in “blame”
▼ + stars: | 2023-04-28 | by ( John Foley | ) www.reuters.com time to read: +4 min

So many, in fact, that the report makes it hard to point the blame anywhere in particular. The 114-page post-mortem of SVB, compiled in just over six weeks at the behest of supervisory chief Michael Barr, points out some obvious but undeniable truths. But this ailing dog of a bank also had a too-long leash, thanks to timid, consensus-seeking supervisors. Using pre-rollback rules, SVB would have fallen visibly short of its required liquidity levels by the end of 2022. But the report skirts over the extent to which the Fed’s top staff were aware of risks at SVB.

☆ NBA, NBPA ratify new collective bargaining agreement
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

April 27 - The NBA Board of Governors and NBA players ratified the new Collective Bargaining Agreement on Wednesday, a seven-year deal that will start on July 1 and run through the 2029-30 season. It features a number of major changes, including an in-season tournament where players on the winning team would each earn $500,000. Despite the plethora of changes, the CBA still requires players to be at least 19 years old to enter the league. But the sides never reached an agreement on that, keeping the "one-and-done" rule in place. Had the sides not reached an agreement on the CBA earlier this month, either party could have decided to opt out of the current agreement, which would have caused the first major NBA work stoppage since the 2011-12 season.

☆ Factbox: Fed, FDIC reviews of US bank failures to spotlight problems, fixes
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +6 min

On Friday the banks' regulators - the Federal Reserve and the Federal Deposit Insurance Corporation - will publish their accounts of what happened at both institutions, and propose fixes to prevent a repeat. The FDIC will also publish a separate report on deposit insurance by Monday. Barr has said the Fed's report will include confidential supervisory information, including citations and exam material not typically disclosed. DEPOSIT INSURANCEThe second FDIC report could provide insight into how officials are thinking about the role of deposit insurance, currently capped at $250,000 per depositor, in financial stability. "The most interesting thing I expect to see is what the FDIC recommends about the deposit insurance cap," Phillips said.

☆ Governors Island to Be Site of $700 Million Climate Campus
▼ + stars: | 2023-04-24 | by ( Emma G. Fitzsimmons | Dana Rubinstein | ) www.nytimes.com time to read: +1 min

In the two decades since the federal government turned over control of Governors Island to New York City, city officials have sought an innovative way to use the 172-acre patch of land with stunning views of Lower Manhattan. On Monday, Mayor Eric Adams plans to announce a $700 million campus dedicated to finding solutions to address the climate crisis. The city chose a consortium led by Stony Brook University to transform one of the island’s last big chunks of developable land into a 400,000-square-foot hub called the “New York Climate Exchange.” The campus, which will focus on researching climate solutions and training for green jobs, is expected to open in 2028. The climate hub will serve as a “living laboratory” that features resilient design, with renderings showing shiny sloped buildings covered in vegetation that are intended to evoke the hills of Governors Island. It will include two newly constructed classroom and research buildings on three acres of land that are currently undeveloped and will also make use of some historic buildings on the island.

At the same time, hiring remained strong through March, and wages continue growing faster than Fed officials feel is sustainable. The ECI is only released quarterly and includes both worker pay and benefits like healthcare, giving what Fed officials regard as a clearer sense of employment-related cost trends. For Fed officials, it could influence their view of whether the economy and inflation are likely to slow more - perhaps much more - quickly than anticipated. Reuters GraphicsEconomists expect the upcoming survey will show conditions tightening further still, this time alongside data showing credit from banks in decline. "Banks may not be done tightening lending standards, which will restrict access to credit, hurt business investment, reduce business formation, and weigh on job growth and consumer spending."

WASHINGTON, April 14 (Reuters) - The International Monetary Fund's steering committee on Friday said it would accelerate its discussions on quota reforms at the global lender with an eye to making "considerable progress" by its next meeting in October. "In this context, we support at least maintaining" the IMF’s current lending resources, Calvino said in a summary of the committee's work. "With regard to IMF resources, I continue to believe that overall resources remain adequate," Yellen said. "At the same time, the IMF needs to follow through on its commitment to a new quota formula that is both fair and simple and primarily reflects the economic size of its member countries." He called for a "pragmatic approach" to complete the review by December to increase IMF resources and to "strengthen the voice and representation of dynamic emerging market and developing economies."

WASHINGTON, April 14 (Reuters) - The Federal Reserve's Board of Governors on Friday said it has approved UBS Group AG's acquisition of the U.S. subsidiaries of Credit Suisse, clearing another major hurdle for the completion of the Swiss-brokered rescue deal. UBS has committed to give the U.S. central bank an implementation plan for combining its U.S. business and operations with those of Credit Suisse within three months of consummating the deal, the Fed's Board said in a statement. UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its earlier market value. UBS has said it expects the deal to create a business with more than $5 trillion in total invested assets. Under the takeover deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in compensation terms, will receive $3.23 billion.

☆ TikTok banned from school-owned devices on all Florida state universities
▼ + stars: | 2023-04-07 | by ( Chris Boyette | ) edition.cnn.com time to read: +1 min

“Data privacy, particularly concerning student data and faculty research, is a critical priority for the State University System of Florida,” the Board of Governors said in a statement to CNN. Bans and regulations of Tik Tok in particular, and of social media sites in general, have been mounting. Utah also regulating useLate last month, the governor of Utah signed a bill which requires teens to get parental approval to use social media. Earlier this week, the United Kingdom’s Information Commissioner’s Office, which regulates data, fined Tik Tok for a number of breaches of data protection law. CNN has reached out to each for comment.

☆ San Francisco Fed leader Daly likely not a major player in SVB saga, officials say
▼ + stars: | 2023-03-31 | by ( Steve Liesman | ) www.cnbc.com time to read: +5 min

"She was not in the chain of command," one former Fed bank president told CNBC. "Supervisory action taken by the San Francisco Fed staff would have been cleared by Washington." Daly and Fed board officials declined to comment for this report. San Francisco Federal Reserve President Mary Daly reacts at the Los Angeles World Affairs Council Town Hall, Los Angeles, California, U.S., October 15, 2019. A review of what went wrong will likely point more heavily to Washington, its supervisory bureaucracy and the board leadership than to San Francisco.

☆ Premarket stocks: Banking chaos has been bittersweet for crypto and wine
▼ + stars: | 2023-03-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

But it also gave the fine wine and crypto industry a big boost as panicking investors rushed out of the financial sector and into alternative assets. Bittersweet banking: SVB lent over $4 billion to winery clients since 1994, with over 400 wine industry clients (including wineries, vineyards and vendors) working with the bank’s premium wine division, according to the bank’s website. Recent SEC filings, meanwhile, indicated SVB had about $1.2 billion in outstanding loans to high-end wine clients when the bank collapsed. Circle, the company behind popular stablecoin USDC, said it had about $3.3 billion of its $40 billion in reserves at SVB. The collapse of Signature Bank, a major crypto lender, also had serious implications for the industry.

The Federal Reserve has raised interest rates repeatedly since 2022, and that makes credit card debt expensive. With debt balances at $986 billion, Americans will pay $45 billion more in interest than they would have. Black and Hispanic Americans are more likely to have credit card debt than white Americans. At the beginning of 2022, the average credit card interest rate was 16.17%, according to the Board of Governors of the Federal Reserve. Ways to take control of your credit card debtIf you find yourself with large credit card debt, it's a good idea to pay it off quickly.

☆ Elizabeth Warren and Josh Hawley just teamed up on a bill that would let the government 'clawback lavish pay and bonuses when executives explode their bank'
▼ + stars: | 2023-03-29 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Elizabeth Warren and Josh Hawley are teaming up to put the heat on executives of failed banks. Mike Braun and Catherine Cortez Masto, introduced a bill called "Failed Bank Executives Clawback Act," which would require that federal regulators "claw back" compensation of executives from the five-year period before their bank fails. "It's time for Congress to step up and strengthen the law so bank executives bear the cost of failure, not line their pockets and walk away scot-free." In the days and weeks following Silicon Valley Bank's collapse, lawmakers on both sides of the aisle — and President Joe Biden — have scrutinized the circumstances that led to the bank's failure. Warren has also pushed to roll back 2018 tweaks to the Dodd-Frank Act, which raised the threshold of holdings that require banks to have greater oversight.

☆ CNBC Daily Open: After SVB collapse, stricter rules coming for banks?
▼ + stars: | 2023-03-29 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The rise in yields suggests traders are growing confident the banking turmoil is subsiding, and they're turning their attention back to inflation. In a bizarre way, even if that's bad news for inflation, that's probably good news for everyone who's been consumed by banking fears in recent days. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ Fmr. Deputy Treasury Secretary Sarah Bloom Raskin on the SVB and Signature Bank hearings
▼ + stars: | 2023-03-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFmr. Deputy Treasury Secretary Sarah Bloom Raskin on the SVB and Signature Bank hearingsFormer Deputy Treasury Secretary and Federal Reserve Board of Governors member Sarah Bloom Raskin explains her expectations for the two-day probe into the failures of Silicon Valley Bank and Signature Bank.

☆ First came bank failures. Now comes the House hearing
▼ + stars: | 2023-03-26 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —Federal regulators are being called to testify before the House Financial Services Committee on Tuesday about the collapse of Silicon Valley Bank and Signature Bank. What lawmakers are saying: Elected officials want a review of what happened at Silicon Valley Bank and Signature Bank earlier this month, as well as stricter regulations to prevent it from happening again. Regulators on March 12, just days after SVB collapsed, announced a guarantee of all deposits at the bank and Signature Bank. What to expect: It’s unclear what will come of the hearings on SVB and Signature Bank. Wednesday: The House Financial Services Committee’s hearing on the banking crisis continues for a second day.

☆ 4 banks have collapsed in less than a month. Here's what Jerome Powell, Nouriel Roubini, Elon Musk and others are saying about the turmoil.
▼ + stars: | 2023-03-25 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

In less than a month, Silvergate, Silicon Valley Bank, Signature Bank, and Credit Suisse have collapsed. Jerome Powell, Nouriel Roubini, Elon Musk, and others have shared their views on the turmoil. Experts have pointed to the Federal Reserve's aggressive rate hikes over the past year as a driver for the turmoil. Jerome PowellFollowing the announcement of a 25-basis-point rate hike, the Fed chief said all depositors' savings are safe, adding that US banking system is "strong and resilient." Elon MuskThe billionaire Tesla and Twitter chief sees danger ahead for the US economy if the Fed doesn't contain the crisis among regional banks.

☆ New York Fed board member warns of commercial real-estate risks
▼ + stars: | 2023-03-24 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

The real-estate sector has also been hard hit by Fed rate rises and commercial real estate has also been hobbled by the shift away from in-office work during the pandemic. Rechler serves as what’s called a Class B director on the 12-person panel of private citizens who oversee the New York Fed. Each of the quasi-private regional Fed banks are also operated under the oversight of the Fed’s Board of Governors in Washington, which is explicitly part of the government. The boards overseeing each of the regional Fed banks are made up of a mix of bankers, business and non-profit leaders. Their most visible role is helping regional Fed banks find new presidents, although bankers who serve as directors are by law not part of this process.

☆ Real estate leader on NY Fed board warns on commercial real estate risks
▼ + stars: | 2023-03-24 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

No-penalty CD vs. savings account: At a glanceIf you're deciding between a no-penalty CD and a savings account, there are two distinctions you'll want to pay close attention to: the interest rate and when you can deposit or withdraw money. Savings accounts generally offer more flexibility for deposits and withdrawals than a no-penalty CD. If you decide to open a no-penalty CD, you'll also want to pay attention to the CD maturity date. Savings accounts allow more accessibility to your money than a no-penalty CD since you can deposit money into a savings account at any time. You'll likely prefer a savings account over a no-penalty CD if you want more accessibility to your money.

☆ Fed’s self-scrutiny starts off on the wrong foot
▼ + stars: | 2023-03-22 | by ( John Foley | ) www.reuters.com time to read: +7 min

Banks with assets worth $100 billion or more face elaborate reviews, which involve a body called the Large and Foreign Banking Organization Management Group. Supervisors had previously noted, and reflected to the Fed group, which vets bank ratings, that SVB had made progress in tackling some of its weaknesses. The central bank doesn’t even acknowledge the existence of the LFBO Management Group on its public-facing website. Rather than just investigate itself, the Fed board could learn from the companies it regulates. SVB was part of the Fed’s “Large and Foreign Banking Organization” supervisory regime, which covers firms with more than $100 billion of assets.

☆ House committee calls Fed, FDIC officials to testify in its first hearing on bank failures
▼ + stars: | 2023-03-17 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — The House Financial Services Committee on Friday announced its first hearing on the failures of Silicon Valley Bank and Signature Bank. The announcement follows President Joe Biden's request to Congress on Friday to allow financial regulators more authority to claw back compensation from executives at failed banks. Committee Chairman Patrick McHenry, R-N.C., and Ranking Member Maxine Waters, D-Calif., said House Financial Services is "committed to getting to the bottom of the failures" of the banks. "As Chairman and Ranking Member, we take our oversight duties seriously. We will conduct this hearing without fear or favor to get the answers the American people deserve."

☆ U.S. Federal Reserve governors to hold closed-door Monday
▼ + stars: | 2023-03-12 | by ( ) www.reuters.com time to read: 1 min

March 12 (Reuters) - The U.S. Federal Reserve said it will hold a closed-door meeting of its board of governors under expedited procedures on Monday. The meeting from 11:30 a.m. (0330 GMT) will primarily review and determine the advance and discount rates to be charged by the Federal Reserve banks, the Fed said in a statement. The central bank offered no further details, but the move follows Friday's collapse of Silicon Valley Bank (SIVB.O), was the biggest failure since the 2008 financial crisis. It roiled global markets, walloped banking stocks and left California tech entrepreneurs worrying about how to make payroll. Reporting by Mrinmay Dey in Bengaluru; Editing by William MallardOur Standards: The Thomson Reuters Trust Principles.

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