Federal Reserve News

Federal Reserve Again Warns About Increase in High-Risk Company Debt

The Federal Reserve escalated its warnings about the perils ofleveraged loan Monday, saying firms with the worst credit profiles are the ones taking on more and more debt. The Fed also left a question unanswered: Is it going to do …

Fed Chair Says Wells Fargo Must Address Risk Management Before Any Growth

Wells Fargo & Co. must keep a lid on its growth until the bank has hardened its risk management policies to prevent any further abuse of its customers, said Jerome Powell, chairman of the Federal Reserve. In February, the Fed …

Concerned Bankers, Investors Warn Federal Reserve About Leveraged Credit Market

Bankers, executives and investors are warning Federal Reserve officials behind closed doors that record leveraged lending to companies from lightly-regulated corners of Wall Street could make any economic downturn harder to manage. With the second-longest U.S. expansion in its advanced …

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 …