SIFIs

With the Federal Reserve and Federal Deposit Insurance Corp. poised to announce the results, it's not clear who should be the most nervous: banks, regulators or the American people.

Survey results of voter attitudes from competitive swing districts indicate that the 2010 financial law is ripe for reform.

WASHINGTON — The Federal Reserve Board released an interim rule Thursday implementing a congressionally mandated reduction in the Fed dividend for banks with over $10 billion in assets.

WASHINGTON — The Federal Deposit Insurance Corp. is moving forward with a plan to force big banks to keep better track of their insured deposits.

While little is known about what regulators are weighing as they grade the 12 biggest firms' resolution plans, experts deeply familiar with the process are speculating that liquidity could be a determining factor in whether the plans are deemed credible or sent back to the drawing board.

In what could be seen as a Nixon-to-China moment, Minneapolis Fed President Neel Kashkari, a former Goldman Sachs executive and one of the architects of Treasury's bailout of the largest banks, said that breaking up the big banks and turning them into public utilities may be the only way to solve "too big to fail."

Federal Reserve Bank of Minneapolis President Neel Kashkari said Congress hasn't gone far enough to protect the U.S. economy from potential crises and unveiled plans to study options for regulators that include breaking up the nation's largest financial institutions.

Lawmakers opted for broadening the focus and makeup of the Financial Stability Oversight Council, but a more focused systemic risk regulator would have had a better chance of success.

Large banks are not buying preferential treatment by contributing to her campaign, Hillary Clinton insisted again on Thursday, attempting to rebut charges leveled at her by Sen. Bernie Sanders.

Senate Banking Committee members pushed Federal Reserve Chair Janet Yellen Thursday for some indication of whether the central bank would approve banks' so-called "living wills" or instead will force asset sales and other steps to simplify their structures.

Other countries have already lowered interest rates below zero, and the financial stability concerns of such a policy taking shape in the U.S. should not be dismissed.

Federal Reserve Board Chair Janet Yellen faced tough questions Wednesday by House Financial Services Committee lawmakers over the central bank's regulatory treatment of big banks.

While the courts generally accord deference to regulators, Judge Rosemary M. Collyer of the D.C. District Court appeared highly skeptical of the Financial Stability Oversight Council's case during the first round of oral arguments on Wednesday.

Sen. Bernie Sanders' victory in New Hampshire will undoubtedly boost his campaign, but his plan to cap interest rates for credit card and other consumer loans at 15% won't help anyone in the short term and could potentially wreak havoc on low-income people in the long term. Here's how.

The proposal is unlikely to pass, but does shed light on the administration's plans for housing finance reform, how it views cybersecurity progress and a proposed tax on bank liabilities that could become a reality if a Democrat takes the White House in November.

The election of a Republican president could be the first prerequisite to repealing the financial reform law, but banks still need to argue their case for why repeal is necessary.

The House passed a bill Thursday 250-169 that would limit regulators' ability to force banks to cut ties with certain businesses despite Democratic fears that it could hamstring the Justice Department's ability to prosecute bankers responsible for the financial crisis.

Democratic front-runner Hillary Clinton is increasingly on the defensive when asked why so many banks and hedge funds on Wall Street have given her money, insisting it doesn't influence her tough reformist views. But it raises the question what institutions hope to gain with all their money.

In a presidential race dominated by populists and even an aging socialist, the establishment candidates that bankers prefer — Hillary Clinton and Marco Rubio — had a good night in Iowa on Monday. But the race is far from over, and the Iowa results showed some ominous signs as well.

The central bank should not delay putting in place a long-term plan that diminishes its outsized influence and allows the financial markets to work without interference.