Billions Idled at Banks After Regulators Balk at Following Fed
By Jesse Hamilton
Two key bank regulators are holding off on easing Wall Street debt limits in response to the coronavirus pandemic, leaving billions of dollars locked up at banking subsidiaries that could be used for lending amid the deepening economic crisis. …Karen Petrou, a managing partner at Federal Financial Analytics, said she was surprised at the lack of statements from the OCC and FDIC. Still, she argued the Fed is probably the most important regulator in this case, because it’s “the deciding factor in capital distributions, which are only a holding company matter.”