SIFIs

The Federal Reserve released the final version of its total loss absorbing capacity rule – one of the final elements of the post-crisis regulatory framework meant to provide a means of recapitalizing a failed megabank.

Federal Reserve Chair Janet Yellen said she is advising the incoming Trump administration not to roll back the improvements in bank safety and soundness enshrined in Dodd-Frank, but acknowledged that recent scandals “certainly suggest there is room for improvement” when it comes to bank culture.

After Wells Fargo became the first U.S. bank ever sanctioned over its resolution plan, observers are wondering what it means for the future of the institution and the living will process.

Of the five banks that failed their living will tests earlier this year and were forced to resubmit plans, only Wells Fargo failed again, resulting in immediate regulatory action that will restrict its growth, including its ability to expand internationally and buy nonbank subsidiaries.

Industry observers worry that the Dodd-Frank Act's Title II — which gives the Federal Deposit Insurance Corp. authority to oversee the resolution of a complex financial institution — could be the first thing under fire when the Trump administration undertakes financial reform.

WASHINGTON — The Federal Reserve Board is slated to vote next week on a final rule meant to help regulators recapitalize a major U.S. bank if it should run aground, one of the last significant capital regulations that the agencies have yet to complete.

The bank must make fundamental changes to avoid becoming the ultimate scapegoat for grievances about Wall Street's biggest banks.

And that was only the beginning. Bank CEOs speaking in New York provided a long list of financial reforms that they would like to see under the incoming Trump administration.

Rather than address systemic risk with impractical capital requirements, regulators can make a few subtle changes that will force the shrinkage of the largest banks gradually over time.

In a wide-ranging interview with American Banker, Cleveland Fed President Loretta Mester talks about what should be kept in the push to deregulate banking regulation, as well as her view on reforming the Fed, ending "too big to fail," the future of Basel and the effect of a Trump administration on financial services.

Federal Reserve Gov. Daniel Tarullo strongly defended bank regulators’ responses to the 2008 financial crisis and faulted competing Republican proposals to replace the Dodd-Frank Act with a simpler, single leverage requirement as shortsighted.

With the anti-globalism sentiment growing in parts of Europe and the U.S., a "my country first" approach to international bank regulation will hurt financial institutions and their local economies.

Some regulators have begun to acknowledge that it's time to rethink the regulatory system put in place in the wake of the financial crisis, while others are raising warnings about weakening safeguards.

President-elect Donald Trump recognizes that full repeal of the Dodd-Frank Act is unlikely, though he supports a House effort to make significant changes, according to a former banker who was on the shortlist to be Treasury secretary.

WASHINGTON – The House is expected to vote on a bill this week that would change the way banks are designated as systemically important and subjected to tougher regulatory requirements.

With the election of Donald Trump in the U.S. and an increasingly isolationist mood pervading European banking regulators, the international Basel III accords that underpinned much of the global post-crisis regulatory framework face an uncertain future.

The president-elect could take aim at the Federal Reserve's ties to Wall Street, bailout authority and other reforms if he really means to take steps to help working people.

The Atlanta Federal Reserve Bank was already under pressure to replace outgoing president Dennis Lockhart with a person of color – preferably the first African-American to head a Fed bank. But the election of Donald Trump has compounded the importance of the pick.

If President-elect Donald Trump selects House Financial Services Committee Chairman Jeb Hensarling as his Treasury secretary, it would be a clear sign that he intends to embrace a more traditional Republican agenda when it comes to financial services issues.

The megabanks that emerged relatively unscathed from the crisis are cited as proof of universal banking's benefits, but recent events have debunked that claim.