The central bank for the U.S., the Federal Reserve System, has hit troubled Deutsche Bank with $156.6 million in civil money penalties and requirements that the bank improve its senior management oversight and controls relating to foreign exchange (FX) trading. “Deutsche Bank lacked adequate governance, risk management, compliance, and audit policies and procedures to ensure… Read More >>
Global Uncertainty Boosts Profits for U.S. Banks
U.S. banks enjoyed a bumper crop of results during the third quarter thanks to volatile conditions in fixed income trading. While some attribute the healthy performance to the so-called Brexit bounce, others point to a wider range of factors behind the better-than-predicted numbers. Analysts had forecast a downbeat earnings season for the U.S. banking sector,… Read More >>
GAO Wants to Break Down Regulatory Silos
The budget watchdog for the federal government, the General Accounting Office (GAO) wants the Congress and the President to clarify the morass of federal regulators overseeing U.S. financial markets, particularly the interactions between the Federal Reserve and the Office of Financial Research (OFR). A report on regulators was part of a larger GAO report on… Read More >>
The Fed’s Trick-or-Treat on Too Big to Fail
Although Halloween has just passed, the U.S. Federal Reserve this past Friday officially proposed a new rule that would in theory prevent big domestic and foreign banks operating in the United States from relying on “extraordinary government support or taxpayer assistance.” In other words, the Fed is taking on firms that are “Too Big to… Read More >>
