FDIC

The head of the Managed Funds Association takes issue with a recent column calling for stricter oversight of nonbank financial institutions.

Travis Hill's nomination to lead the Federal Deposit Insurance Corp. was recommended favorably by the Senate Banking Committee to the full Senate Wednesday morning in a 13-11 party-line vote.

The proposal to push up some federal deposit insurance coverage to $10 million per account would encourage banks to take excessive risks while leaving consumers with the bill.

The Senate Banking Committee is slated to hear testimony from acting Federal Deposit Insurance Corp. Chair Travis Hill Thursday morning as he seeks to be confirmed to the role permanently.

Acting Federal Deposit Insurance Corp. Chair Travis Hill said the agency will open the bidding process for failed banks to private equity and other nonbanks, streamline resolution plans and revamp its bidding and funding models, reforms spurred by 2023's bank failures.

A former chair of the Federal Deposit Insurance Corp. argues that community banking in the U.S. is being slowly strangled by regulations that place heavier burdens on small banks than on giant ones.

The Senate confirmed former Federal Deposit Insurance Corp. board member Jonathan McKernan to serve as Treasury's under secretary for domestic finance on a party-line vote, installing a key industry ally in the Treasury Department.

The Federal Deposit Insurance Corp. approved proposals Tuesday that would define "unsafe or unsound practices" and ban the use of "reputation risk" in supervisory exams.

Hill, who has been serving as acting chair since January, has steered the agency toward deregulation and away from Biden-era priorities, with strong backing from big banks.

At a banking conference this week, there was growing optimism that a key regulatory threshold will be raised from $100 billion to $250 billion.

The agency's proposal to remove the requirement that banks provide public notice of plans to open new branches short circuits a key means of holding banks accountable for their obligations under the Community Reinvestment Act.

Four years after its launch, the Mission Driven Bank Fund has ended its fundraising well short of its original $500 million target. Still, organizers are hopeful that the fund's performance will attract other investors to the sector.

The Federal Deposit Insurance Corp. said Tuesday that bank profits slipped slightly in the second quarter as the Capital One-Discover merger drove provisions higher. Loan growth, deposits and insurance fund reserves showed positive signs despite ongoing credit issues.

The Federal Deposit Insurance Corp. proposed a rule Tuesday that would allow banks to remove FDIC insurance labels except on initial webpages and no longer require alerts warning customers that non-deposit products are not insured.

As bank regulators work to create a more transparent and effective supervisory process, they should overhaul the process for appealing their rulings to include challenges to enforcement actions.

An Office of Inspector General audit says the agency's existing program for overseeing banks' technology providers lacks clear goals and metrics. It recommends the adoption of a new risk-ranking methodology by 2026.

Banks would face much higher assessments to bring the Deposit Insurance Fund's reserve ratio into compliance. Those costs would be reflected in higher fees and reduced availability of credit.

The Federal Deposit Insurance Corp. withheld bonuses from former FDIC Chair Martin Gruenberg and four senior officials, whose names were redacted from the report, as part of "corrective action" for allegations of misconduct.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency proposed a rule that would revert the anti-discrimination framework to its 1995 standards.

As we enter one of the banking industry's most extreme cycles of deregulation, we should remember it doesn't always work, especially when supervisory police are reduced and consumer protection guardrails are removed, resulting in a high-speed lane for risk-taking banks and nonbanks.