Federal Reserve News

Fed Proposal Would Hike Capital Requirements to Discourage ‘Too Big to Fail’

Minneapolis Federal Reserve President Neel Kashkari unveiled a plan on Wednesday to prevent future government bailouts by forcing the largest U.S. banks to hold so much capital that they would probably decide to break themselves up. Kashkari’s plan would also …

Bangladesh Cyber Bank Heist Prompts Scrutiny of Cyber Security Measures

A printer error first tipped off Bangladesh’s central bank to one of the biggest cyber heists in recent history, according to a complaint filed to police that provided new details on the attempted theft of nearly $1 billion. Zubair Bin …

Malware Used to Steal $80M-Plus in Bangladesh Cyber Bank Heist: Officials

Investigators suspect unknown hackers managed to install malware in the Bangladesh central bank’s computer systems and watched, probably for weeks, how to go about withdrawing money from its U.S. account, two bank officials briefed on the matter said on Friday. …

German Advisers Warn Europe’s Low Interest Rate Policies Risk Financial Stability

The German government’s panel of economic advisers said on Wednesday the European Central Bank’s low interest rates were creating substantial risks, and Finance Minister Wolfgang Schaeuble warned of a “moral hazard” from loose monetary policy. The double-barreled message came after …

A.M. Best: European Insurers Tap Capital Markets Ahead of Solvency II

Low interest rates together with highly liquid and stable financial markets have prompted European insurers to tap the capital markets in their efforts to lower the cost of capital and optimize levels of risk-adjusted capitalization, according to a new report …

Terrorism Insurance Bill Tagged with Community Bank Provision

When the U.S. House of Representatives approved a terrorism insurance bill last week, it contained a little-noticed provision that would require at least one member of the Federal Reserve’s board to have community banking experience. That provision appears destined to …

AIG, Prudential Financial on Federal Reserve’s List of 15 Firms for Extra Supervision

The Federal Reserve released a list of 15 firms that merit an extra layer of supervision because they pose heightened systemic risks, including JPMorgan Chase & Co. and Bank of America Corp. The tally published on the Fed’s website today …

Insurers Urge Lawmakers Not to Impose Bank Capital Requirements on Industry

Insurance companies will urge U.S. lawmakers today to stop the Federal Reserve from imposing bank- like capital standards on their industry. A provision of the 2010 Dodd-Frank Act that overhauled U.S. financial regulation requires the Fed to set minimum capital …

Greenberg Cautions on Quick Fed Pullback; Prefers Yellen Over Summers

Maurice “Hank” Greenberg, former head of American International Group Inc., said the Federal Reserve could disrupt financial markets by curbing bond buying too quickly and that Janet Yellen would take a measured approach. “It’s got to be done gradually,” Greenberg, …

Senate Bill Gives Federal Reserve Flexibility on Systemically Important Insurers

A bipartisan group of U.S. senators is introducing legislation that would give the Federal Reserve more flexibility in regulating systemically important insurance companies such as American International Group Inc. The Senate bill, whose sponsors include Ohio Democrat Sherrod Brown and …