Banking Crisis 2023

The two Trump-appointed governors expressed skepticism that the increased capital requirements for regional banks were necessary to keep the banking sector resilient.

The FDIC proposed raising capital requirements for banks with $100 billion or more in total assets gradually over the next five years. Republican appointees on the board opposed the rule as excessive and impetuous.

Following the difficulties of Silicon Valley Bank and Signature Bank this spring, banks are approaching the emergency lending facility more proactively, the Federal Reserve chair said.

Post-merger Banc of California will target "in-market relationship banking" by focusing on treasury management services and loan growth to boost "low-cost" commercial deposits, CEO Jared Wolff said.

Federal Deposit Insurance Corp. sales from the portfolios of failed Silicon Valley Bank and Signature could be complete by September, according to a report published Tuesday by FHN Financial.

Concluding the industry faces years of upheaval, BlackRock is poised to become a bigger buyer of assets that banks unload to improve their capital and liquidity.

Former Federal Reserve Vice Chair for Supervision Randal Quarles criticized his successor's plan to significantly increase capital requirements for big banks, saying it would needlessly hurt the economy.

For now, worries about more bank failures have faded. But in the wake of the recent industry turmoil, higher funding costs are expected to weigh on banks' second-quarter results.

JPMorgan Chase hired Silicon Valley Bank veteran John China to co-lead the business of banking venture capitalists and startups, part of the firm's growth strategy for the sector.

The biggest of the big banks don't like the Federal Reserve's new vision for bank capital, but the changes will hurt their regional peers more. Once again, the advantage lies with the megabanks.