WASHINGTON — The Federal Reserve Board and Office of the Comptroller of the Currency are extending the comment deadline for a proposal to adjust a key capital measure for large banks.
The Fed and OCC issued their proposal last month to change the enhanced Supplementary Leverage Ratio, or eSLR, from a fixed ratio applied to all global systemically important banks to a variable ratio based in part on banks’ G-SIB capital surcharge. The regulator extended the comment period from May 21 to June 25 amid concerns that stakeholders need more time.
The federal bank regulators have been divided over the proposal. Fed Gov. Lael Brainard voted against the plan, saying it was inconsistent with the current climate. The Federal Deposit Insurance Corp. also withheld support, with FDIC Chairman Martin Gruenberg saying the proposal would require big banks to hold $121 billion less in Tier 1 capital. Their views were echoed by former FDIC Chairman Sheila Bair and Thomas Hoenig, the agency's former vice chairman.
But backers of the plan say those concerns are unfounded. Fed Vice Chairman for Supervision Randal Quarles suggested in a speech earlier this month that the total capital reductions at the bank holding company level would be far less, on the order of about $400 million across all eight holding companies. Stakeholders are at odds about which figure more closely represents the actual release of capital, and the subject is likely to be at the heart of many comments the agency will receive.
The Office of the Attorney General in New York says the bank violated the state's Exempt Income Protection Act, illegally transferring customers' money to debt collectors.
The Providence, Rhode Island, company is having discussions with private wealth management teams elsewhere as it seeks to expand its fledgling private bank. In just three months, private banking deposits doubled to $2.4 billion.
After the Minneapolis-based company reported stubbornly high commercial deposit costs, it reduced its full-year forecast for net interest income by $200 million-$500 million.
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
Rising deposit costs have plagued banks in general, and the Tennessee bank had to pay up to bolster liquidity after its failed merger with TD. But First Horizon retained customers in the first quarter while not paying them the special rates they got last year.
U.S. customers who have previously used Sweden-based Klarna's buy now/pay later financing — and paid off their loans in full — will be prequalified for interest-bearing loans through a new version of the Klarna Visa card rolling out later this year.