Fed Mulling Tougher Rules for Mid-Size Banks: Report – Western Alliance (NYSE: WAL), First Republic Bank (NYSE: FRC), KeyCorp (NYSE: KEY)

federal Reserve Is Reportedly considering tougher regulations and oversight for mid-sized banks that are similar in size to collapsed Silicon Valley Bank.

Bank failure is being reviewed by Fed Vice President for Supervision Michael Barr That could pave the way for stronger regulations on banks in the range of $100 billion to $250 billion, Reuters reported, citing a source.

The review will be released by May 1, and Barr’s review of bank capital rules will be extended, the report said.

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Currently, following a 2018 regulation law, the most stringent capital and liquidity requirements are set aside for the country’s largest banks. Congress Fed rule-making under former leadership made those rules easier for smaller companies, the report said.

All those requirements could be reworked by the central bank in the wake of the ongoing banking crisis, which has also drawn fresh calls from supporters of tougher rules.

including fifty Democratic lawmakers Senator Elizabeth Warren (D-Mass.)A bill was introduced on Tuesday to repeal a law that eased regulations for banks in 2018, the report said.

Price Action: Bank stocks saw some recovery on Tuesday as fears of a possible contagion eased. shares of Western Alliance Bancorporation wall closed with a gain of 14.36% on Tuesday First Republic Bank FRC increased by 26.98%. keycorp key The stock closed up 6.94%.

Meanwhile, the US Department of Justice And this Securities and Exchange Commission are probing the collapse of the Silicon Valley bank, according to one reports The Wall Street Journal cited people familiar with the matter.

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