All articles tagged with #federal reserve board
Adriana Kugler, a Federal Reserve Board member appointed by Biden, announced her resignation, creating a vacancy that President Trump may fill, potentially influencing future interest rate policies. The article discusses her background, her tenure, and the political implications of her departure, including Trump's criticism of Fed Chair Jerome Powell and his interest in appointing a new Fed chair.
The Federal Reserve Board has fined JPMorgan Chase & Co. approximately $98.2 million for an inadequate program to monitor firm and client trading activities for market misconduct between 2014 and 2023. The Board's action requires JPMorgan Chase to review and address the firm's inadequate monitoring practices. This enforcement action was taken in coordination with the Office of the Comptroller of the Currency, and the total penalties amount to approximately $348.2 million.
The Federal Reserve Board has released the hypothetical scenarios for its annual stress test, which evaluates the resilience of large banks by estimating losses, net revenue, and capital levels under severe recession scenarios. This year's test includes a global recession with heightened stress in real estate and corporate debt markets, and for the first time, an "exploratory analysis" with four hypothetical elements to probe different risks in the banking system. The exploratory analysis will not affect bank capital requirements, and the results will be published alongside the annual stress test results in June 2024.
The Federal Reserve Board has fined the Industrial and Commercial Bank of China Ltd. and its New York branch approximately $2.4 million for unauthorized use and disclosure of confidential supervisory information, including reports of bank examinations and other confidential communications by banking regulators, totaling approximately $32.4 million in penalties with the New York Department of Financial Services.
Vice Chair Jefferson welcomes attendees to the 18th Central Bank Conference on the Microstructure of Financial Markets, emphasizing the importance of well-functioning financial markets for the economy. He highlights the need for effective and efficient markets that aggregate and reflect information accurately, remain deep and resilient during economic stress, and are fair to all participants. Jefferson discusses the significance of understanding the microstructure of financial markets, particularly in the context of the U.S. Treasury market, which has undergone significant changes and experienced episodes of stress. He mentions ongoing interagency efforts to enhance the resilience and transparency of the Treasury market and emphasizes the relevance of market microstructure research in addressing key questions and improving market functioning.
The Federal Reserve Board has launched Instagram and Threads accounts in an effort to make Board news and educational content more accessible and available to the public. The Instagram account will feature photos, videos, FAQs, and economic education content, while the Threads account will include press releases, speeches, testimony, and reports. The Board's website will remain its primary communication channel, with selected announcements shared on Instagram and Threads after being posted on the website. This launch expands the Board's information-sharing platforms to a total of seven, including X, Facebook, YouTube, Flickr, and LinkedIn.
Farmington State Bank, linked to FTX, has been ordered by the Federal Reserve Board to wind down its operations after engaging in digital assets-related activities without notifying or obtaining approval from its supervisors. The bank had promised to avoid digital bank operations and modify its business plan, but allegedly worked with a third party to facilitate the issuance of stablecoins. The enforcement action prohibits the bank from making dividends or capital distributions without permission. Earlier this year, federal prosecutors seized $50 million from Farmington, alleging it was part of a scheme to defraud crypto investors.
The Federal Reserve Board has issued an enforcement action against Farmington State Bank and its holding company, FBH Corporation, for improperly changing its business plan without notifying supervisors and obtaining prior approval. Farmington will sell its loans and deposits to the Bank of Eastern Oregon, and the action ensures a controlled wind-down of the bank's operations while protecting depositors and the Deposit Insurance Fund. The action also prohibits Farmington and FBH from making dividends or capital distributions without approval and engaging in certain activities without supervisor consent.
The Federal Reserve Board has announced two enforcement actions against Deutsche Bank AG, its New York branch, and other U.S. affiliates. The first action includes a consent order and a $186 million fine for unsafe and unsound practices and violations of previous consent orders relating to sanctions compliance and anti-money laundering controls. The second action is a Written Agreement addressing general deficiencies in Deutsche Bank's governance, risk management, and controls.
The Federal Reserve Board has fined Wells Fargo $67.8 million for inadequate oversight of sanctions compliance risks at its subsidiary bank, Wells Fargo Bank, N.A. The bank violated U.S. sanctions regulations by providing a trade finance platform to a foreign bank that used the platform to process approximately $532 million in prohibited transactions between 2010 and 2015. The U.S. Department of the Treasury's Office of Foreign Assets Control is also imposing a separate penalty on Wells Fargo Bank for these violations, bringing the total penalty to approximately $97.8 million.