Randal Quarles

The Federal Reserve Board unveiled a host of proposed changes to tailor U.S. supervision of foreign firms, as well as a proposal easing “living will” requirements for both domestic and overseas banks.

Randal Quarles, a senior Fed official and chair of the Financial Stability Board, sparked debate with a speech about the risks and rewards of companies like Amazon, Facebook and Apple entering the financial system.

The Federal Reserve voted Wednesday to keep the countercyclical capital buffer at its current level of zero, ending some speculation that the board could be looking at a possible increase.

The Federal Reserve’s top regulator, who assumed the chairmanship of the international board in November, said the FSB should explain the rationale behind its financial benchmarks while establishing new ones to combat emerging threats.

The Fed vice chair says regulators need to be on the “cutting edge” at spotting vulnerabilities; firm looks to win over future millionaires.

The central bank has drawn mixed reviews for new stress test scenarios and changes to how much banks know about the test beforehand. Its top regulatory official says the enhancements help the post-crisis regime evolve.

The exemption was included in a suite of other changes unveiled to provide greater transparency to the Fed's stress testing regime.

If Cain is chosen for the Federal Reserve Board, it would be starkly out of step with the administration’s other nominations and may reveal a drastic change in the president’s attitude toward the central bank.

The top Democrat on the Senate Banking Committee is warning that excessive optimism in the banking system could lead to another crisis.

The Dodd-Frank Act gave the central bank authority to set capital requirements for insurance companies that own a federally insured bank, as well as those determined to be systemically important.