• EU has UK, US clearinghouse supervision on track despite Brexit chaos
    16 January 2019
    While the UK considers what to do about Brexit, EU legislators are set to move ahead on the top priority in financial legislation before Britain’s departure.

    Negotiators for the European Parliament and national governments will open final-stage discussions in Strasbourg tomorrow on a bill to revamp the supervision of clearinghouses. The key target is LCH, the London Stock Exchange Group unit that handles most of the derivatives of interest for the region. US-based clearinghouses such as CME Group and Intercontinental Exchange also are among those that would be affected (update*).

    *Updated on Jan. 16, 2019 at 20:10 GMT. Adds information about US clearinghouses affected.

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  • Fed being audited for its monitoring of banks' compliance with enforcement orders
    15 January 2019
    The US Federal Reserve’s enforcement practices are being audited to determine how well the central bank tracks firms’ compliance with sanctions, the Fed’s inspector general said.

    The audit, due to be completed by the end of September, comes as the Fed oversees Wells Fargo’s attempts to tighten controls to secure a lifting of an unprecedented growth cap imposed for a phony accounts scandal.

    Wells Fargo Chief Executive Officer Timothy Sloan said today he expects the Fed’s asset cap to remain in effect through the end of the year.

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  • Banks promised transparency into FDIC exams, startup applications, McWilliams says
    14 January 2019
    Banks will soon see how long it takes regulatory examinations and startup applications to be completed as part of the US Federal Deposit Insurance Corporation’s bank-backed transparency effort, Chairman Jelena McWilliams said.

    “We are in the process of releasing this information,” she said at a Washington event* last week. “By making this information available to the public, we are holding ourselves publicly accountable to high standards".

    The data will be released in financial institution letters and press releases, said McWilliams, whose “Trust Through Transparency” plan was her first policy initiative after taking the helm last June.

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  • Fed’s balance sheet review includes Dodd-Frank impact on banks’ liquid holdings, Vice Chairman Clarida says
    11 January 2019
    The Federal Reserve is evaluating its holdings of bank reserves in light of post-crisis regulations that require firms to keep more liquid assets and banks’ risk-averse preference for them, Vice Chairman Richard Clarida said.

    “Ultimately, these factors, along with the choice we make with regard to our operating framework, will be the primary determinants of the size of our balance sheet,” he said yesterday.

    Clarida’s comments reflect the Fed’s evolving view that Dodd-Frank Act regulations enacted since the 2008 financial crisis should be factored at times into monetary policy considerations.

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  • Fed to mobilize its insurance capital proposal in campaign to modify global plan
    10 January 2019
    The US Federal Reserve will try to leverage its upcoming proposal on insurance capital requirements in an effort to make an international plan more suitable for the US market, Fed Governor Randal Quarles said.

    Quarles, the vice chairman for supervision, said yesterday that the Fed and US insurance regulators are seeking an alternative to the insurance capital standard, or ICS, proposed by the International Association of Insurance Supervisors.

    “The current core proposal in the ICS would face implementation challenges in the United States,” he said at an American Council of Life Insurers event.

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