In recent years, stress tests by the US Federal Reserve have been relatively incident free, but this year’s exercise has run into sharp criticism in some quarters including from a former Fed member
Americas
Covid-19 serves as catalyst for US deregulation of financial services
The economically devastating impact of the Covid-19 pandemic seems to have acted as a catalyst for US regulators to loosen prudential rules further and faster ahead of the presidential election in November.
Banks score significant victory with relaxation of Volcker Rule
Five US regulators have loosened the Volcker Rule, making it easier for banks to make bigger investments in so-called ‘covered funds’, such as venture capital funds, and have relaxed capital requirements on intra-company derivatives trades.
FDIC ponders dropping quarterly reporting by banks
Banks could be relieved of having to make long-standing quarterly regulatory reports to the Federal Deposit Insurance Corp (FDIC) in favour of a more technology-driven approach.
Banks told to incorporate Covid-19 ‘lessons’ in their resolution planning
The 2021 resolution plans filed by the eight largest and most complex US banks will have to detail how they integrated lessons learned from the coronavirus pandemic on top of the usual core elements, two prudential regulators have said.
New York Fed audit finds it is compliant with IOSCO benchmark principles
The interest rate benchmarks administered by the Federal Reserve Bank of New York were found to be in compliance with the principles set out by the International Organization of Securities Commissions (IOSCO) following an annual audit.
Big European banks revealed by Fed as having weak US franchises
Simulations by the US Federal Reserve Board as part of its latest stress tests potentially sees European banks suffering the sharpest losses from the fallout of the Covid-19 pandemic.
US negative interest rates would hurt banks, warns Goldman Sachs
With the US economy facing its worst crisis since the Great Depression, the US Federal Reserve has discussed imposing negative interest rates, a move Goldman Sachs says would damage the banking sector
FOMC reveals Fed worries about financial stability
Officials at the US Federal Reserve fear that the dramatic economic slump accompanied by the fastest pace of job losses in the country’s history due to measures to contain the Covid-19 pandemic could threaten financial stability.
Temporary easier SLR requirements widened to other banks
US federal prudential regulators have widened temporary restrictions within the supplementary leverage ratio (SLR) to include more banks.
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