Federal Reserve

Corporate bonds

Fed's support for corporate debt has been a Wall Street bonanza

The Federal Reserve's extraordinary effort to keep credit flowing to companies during the Covid-19 pandemic is also shunting money to banks' bottom lines.

1m ago

Federal Reserve

Senate Banking Committee to consider controversial Fed board pick

The panel later this month will vote on the nomination of Judy Shelton, whose views on certain policy issues have met with skepticism from both Democrats and Republicans.

By Neil Haggerty

July 10

A number of senior Republicans on the committee raised concerns about Judy Shelton’s nomination because of her views regarding the need for deposit insurance and whether the Fed should be independent from outside influence.

BankThinkDon’t weaken the G-SIB surcharge

The Fed has already eased certain capital requirements in response to the coronavirus pandemic. It should avoid making any further adjustments to the surcharge, which is meant to keep global banks from creating systemic risks.

July 10

Jeremy Kress

Assistant Professor

Ross School of Business

Main Street Lending Program

Lenders face quandary over offering Main Street loans to noncustomers

Many big banks say they will focus on existing customers in offering credit through the Federal Reserve’s emergency lending program for midsize businesses. Complex vetting and fear of being inundated are said to be among their concerns.

By Hannah Lang

July 9

“I would highlight that many banks not on that list are still providing the program for their own borrowers, but aren't going to both make the program available to noncustomers and don't want to necessarily be publicly revealed,” said Eric Rosengren, president and CEO of the Boston Fed.

Living wills

Fed's Quarles urges nations to strengthen bank resolution plans

Randal Quarles, who is also chairman of the Financial Stability Board, said FSB members must do more to prepare for bank failures.

By Hannah Lang

July 7

“The benefits of reforms cannot be realized unless they are operationalized,” said Fed Vice Chairman Randal Quarles, who chairs the Financial Stability Board.

BankThinkBlack communities need more help from Fed

The Main Street Lending Program and other Federal Reserve loan facilities should be tailored to the needs of Black-owned banks and businesses.

July 7

William Michael Cunningham

Founder

Creative Investment Research

Main Street Lending Program

Fed to start buying loan stakes in coronavirus rescue program

Banks participating in the Main Street Lending Program were able to register for and offer credit to businesses last month, but the Federal Reserve said Monday it was set to make the effort fully operational.

By Hannah Lang

July 6

Morning scan

Federal loan programs seek borrowers; ECB to encourage more bank mergers

The Main Street Lending Program is off to a slow start, while the PPP is extended five weeks to distribute the remaining $130 billion in loans; the European regulator is softening its stance to allow more deals.

By George Yacik

July 2

A Eurosystem monetary authority sign stands on display outside the European Central Bank headquarters in Frankfurt on April 29, 2020.

Main Street Lending Program

Banks 'not getting a ton of interest' in Main Street program: Powell

Federal Reserve Chairman Jerome Powell said about 300 lenders have signed on to the program and that the central bank is committed to making adjustments that could attract more borrowers.

By Hannah Lang

June 30

Capital

Pack of regionals can satisfy stress tests with minimum buffer

Six of the eight regional banks that announced their stress capital buffers on Tuesday said they will need just a 2.5% cushion to weather an economic downturn. All eight said they’ll keep their dividends steady.

By Jon Prior

June 30