All articles tagged with #bank regulation
U.S. regulators, including the Federal Reserve, have eliminated rules requiring banks to prepare for climate-related losses, citing redundancy with existing risk management standards, despite concerns from some officials about increased financial system risks and the broader implications of climate change.
President Trump nominated Travis Hill, the acting chair of the FDIC, to be the permanent chair of the US bank regulator, with Hill known for rolling back some recent banking regulations and seeking to ease enforcement if confirmed by the Senate.
The Federal Reserve Board has reduced Morgan Stanley's stress capital buffer requirement from 5.1% to 4.3% after reconsideration, citing conservative loss estimates and portfolio specifics as reasons for the adjustment.
Vice Chair Bowman discusses the U.S. economic outlook, emphasizing resilience amid signs of fragility, and highlights ongoing efforts to support community banks through regulatory reforms, addressing issues like liquidity, capital requirements, and fraud, while advocating for a balanced approach to monetary policy.
Following the Fed's easing of stress test conditions, major US banks like JPMorgan, Goldman Sachs, and Bank of America announced increased dividends and share buybacks, reflecting a more relaxed regulatory environment after passing the recent tests that assessed their resilience to economic crises.
The Federal Reserve proposed relaxing key capital rules for large banks, aiming to enhance their ability to hold Treasuries and support the US Treasury market, though the move faces opposition from some regulators and politicians concerned about financial stability.
The Federal Reserve plans to significantly reduce capital requirements for the largest US banks by easing the supplementary leverage ratio, aiming to improve market functioning and align with international standards, despite concerns about increased risk and potential for future financial instability.
Federal Reserve official Michelle Bowman advocates for an interest rate cut as early as July, citing minimal impact from tariffs and trade negotiations, and discusses potential reforms to banking regulations to support economic growth. She highlights concerns about labor market fragility and the need to consider downside risks in policy decisions.
The Federal Reserve is set to discuss easing leverage requirements for large banks at a June 25 meeting, marking a potential shift in bank regulation under new top regulator Michelle Bowman, with industry advocates seeking revisions to the supplementary leverage ratio to ease constraints on lending and market operations.
The Swiss government proposed stricter capital rules for UBS following its acquisition of Credit Suisse, potentially requiring an additional $26 billion in core capital and full capitalization of foreign units, which UBS criticizes as extreme and competitive disadvantages. Shares rose after the announcement, and the reforms aim to strengthen regulation and liquidity access, with a transition period of 6-8 years. The proposals also include measures to bolster the Swiss financial regulator and may influence UBS's business model and location decisions.
The Swiss government plans to require UBS to hold an additional $26 billion in capital following its acquisition of Credit Suisse, aiming to prevent the bank from becoming 'too big to fail.' This move could impact UBS's share buybacks and competitiveness, with the bank lobbying against these stringent requirements, which could raise its CET1 ratio to 17-19%. Despite the challenges, UBS shares rose 6% on the news, and the new rules are expected to be legislated by 2026-2027.
The Swiss government has proposed new strict capital rules requiring UBS to hold an additional $26 billion in core capital following its acquisition of Credit Suisse, aiming to strengthen its stability but raising concerns about its competitiveness and impact on shareholder returns. UBS supports most proposals but opposes the extreme increase, and the implementation is expected to take several years, with full compliance by 2034.
The Swiss government has proposed increasing UBS's capital requirements by up to $26 billion to prevent another Credit Suisse-style crisis, including full capitalisation of foreign subsidiaries, with reforms expected to be enacted by 2028 and a transition period of six to eight years, amidst ongoing political debate and lobbying.
The Federal Reserve announced that Wells Fargo is no longer subject to the asset growth restriction from its 2018 enforcement action after meeting all conditions, including improvements in governance and risk management, reflecting significant progress in addressing previous deficiencies.
U.S. Treasury Secretary Janet Yellen has cautioned the incoming Trump administration against making radical changes to the current bank regulatory framework, emphasizing the importance of maintaining oversight on banks' capital, liquidity, and risk-taking to prevent financial crises. Yellen acknowledged the need to reduce regulatory burdens but warned against undermining the system that ensures financial stability, referencing past bank failures like Silicon Valley Bank and Signature Bank. Her comments come amid concerns that Trump's team may seek to reduce or eliminate key bank regulators.