Banking Crisis 2023

FDIC Chairman Martin Gruenberg announced that regulators will soon issue a proposed rule to finalize U.S. implementation of the most recent revisions to the Basel III capital framework. Among the expected updates are changes to capital requirements for banks with assets of more than $100 billion, three of which failed this spring.

The chairman of the Federal Reserve told the House Financial Services Committee that no decisions have been made about regulatory changes, but whatever does come to pass will take time to implement.

Bank of America had a 55% increase in new clients in May, and the lender is planning to bulk up staffing to keep up with demand. 

The Senate Banking Committee sent the bill led by the panel's chairman, Sherrod Brown, D-Ohio, and ranking member Tim Scott, R-S.C., to the full Senate in a 21-2 vote.

Data from recent bank failures suggests that prevailing assumptions about which deposits are the most volatile could be dangerously flawed.

Senate Banking Committee Chairman Sen. Sherrod Brown, D-Ohio, and ranking member Sen. Tim Scott, R-S.C., will have to contend with members of their own parties who would prefer a more sweeping executive compensation clawback bill.

Federal Reserve Vice Chair for Supervision Michael Barr said he is overseeing a six-month project to overall supervisory culture, practices, behavior and tools. He said regulatory changes will also be explored.

CEOs have to determine if this is really a viable business in a viable sector and whether these deposits can be safely used to support the fundamental mission of providing credit to the community.

Discover Bank launches financial health fund, Cross River Bank climbs past real-time payment transaction benchmark, Webster funds financial education at youth-focused nonprofits and and more in this week's banking news roundup.

The Senate bill, which will receive a committee vote next week, would give the FDIC the option to take back compensation from executives at failed institutions. Some advocacy groups want stronger language.

In a speech, the Federal Reserve Board governor said tighter monetary policy is not to blame for the volatility seen in the banking system this spring.

The idyllic existence of Federal Home Loan bank leaders has persisted for 90 years. Now the castle walls may be crumbling.

The Federal Reserve chair said that as the Treasury replenishes its general account at the Fed, it will lead to fewer reserves in the banking system.

Recent bank failures point to the need for banks to expand their customer base. That might require stepping outside your comfort zone.

Lawmakers questioned Treasury Secretary Janet Yellen on concerns including bank consolidation, the systemic risk exception and the need for regulation of cryptocurrency during Tuesday's House Financial Services Committee hearing. During the hearing lawmakers highlighted gaps they see in post 2008 financial regulations at a time when they say big banks wield growing influence on the system.

The Roseville, California institution is expanding into the Bay Area in hopes that it can land new clients and lenders in the wake of two large regional failures there this year.

Federal Deposit Insurance Corp. Vice Chair Travis Hill said Silicon Valley Bank's failure raises concerns over the resolution process, and said regulators should work harder to find a buyer for distressed banks in the future. 

PacWest Bancorp has completed the first part of the sale of a $5.7 billion loan portfolio to the real estate investment company Kennedy Wilson Holdings as the U.S. regional bank takes steps to shore up liquidity.

An analysis by S&P Global Market Intelligence shows that 37 of the 50 largest U.S. banks reported increases in total assets after a series of regional lender failures.

After shares dropped in the aftermath of recent failures, most banks demonstrated resilience and investors started to buy back into the sector.