Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Inside Washington (06/27/2011)
* WASHINGTON (6/28/11)--The Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, said Saturday Basel’s proposed capital surcharge for the largest financial institutions will be 1% to 2.5%, depending on a bank’s systemic importance. Many regulators, including Federal Deposit Insurance Corp. Chairman Sheila Bair and Federal Reserve Board Gov. Dan Tarullo, had indicated they favor a minimum 3% surcharge (American Banker June 27). The surcharge will not be fully effective until Jan. 1, 2019. Broader Basel III requirements also require all internationally active banks to hold common equity of 7% by 2019. International regulators also indicated that they would accept alternative forms of capital, including hybrid instruments such as contingent capital, to meet the surcharge requirements. U.S. regulators did not favor that approach, but European supervisors have been lobbying hard to include such instruments … * WASHINGTON (6/28/11)--In her last speech before leaving the Federal Deposit Insurance Corp. (FDIC), Chairman Sheila Bair called for longer-term, strategic economic policies to avoid the type of thinking that caused the financial crisis and is threatening current regulatory reforms. Bair, speaking before the National Press Club, called “short-termism” a growing problem in both business and government. She said short-term thinking is “a market failure that leads to underinvestment in valuable projects with long payoff periods.” Bair said the reason that lenders were willing to make risky loans--and security issuers were willing to fund them--during the mortgage crisis--is that they knew they would be paid up front. Mortgage investors and the homeowners, meanwhile ended up bearing the long-term consequences. She said the FDIC is determined to press for a more systemically important financial institution resolution framework …


RSS print
News Now LiveWire
.@BelvoirFederal revamped the checking acct. it offers to active duty military members and achieved 23% growth on the product in 1 mo.
11 hours ago
.@FinancialCmte markup of Reg D Study Act set for Tuesday. CUNA will submit support letter. http://t.co/cDWkZ0Q0x1
15 hours ago
The 54th Western CUNA Management School graduated 89 students on July 25.
15 hours ago
.@CUNA Bank Secrecy Act training to reach 38 Mich. state examiners #NewsNow http://t.co/7HDPgwih8G
17 hours ago
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
7 25 ago