FDIC’s OIG: Agency Faces Severe Staffing, Resolution Challenges
The FDIC’s Office of the Inspector General (OIG) late yesterday issued an assessment of ongoing FDIC challenges. These only indirectly address the workplace-culture inquiry now gripping the agency and Congress, focusing principally on the extent to which the agency has made progress addressing the significant internal failings identified in its reports on Signature Bank’s failure (see Client Report REFORM222) and that of First Republic.
Progressive Dems Argue that De-Risking is Discriminatory
Late yesterday, Sens. Warren (D-MA) and Sanders (D-VT) alongside Reps. Omar (D-MN), Tlaib (D-MI), and Pressley (D-MA) sent letters to the heads of JP Morgan Chase, Wells Fargo, Bank of America, and Citibank criticizing the banks for what they describe as shutting down consumer accounts as part of AML de-risking practices. Calling this harmful to consumers and a threat to equitable access, Muslim-Americans and other minority communities are said to be disproportionately affected in violation of Treasury policy.
Basel Head Continues Capital-Reg Defense, Work on NBFI Standards
The head of the Basel Committee, Pablo Hernández de Cos, today reiterated his defense of the global capital rules, spending much of the talk arguing against those seeking to roll them back and those who consider bank capital “idle money.” The talk also emphasized the inter-connected risk to banks highlighted by new exploratory Fed stress tests (see Client Report STRESS32), Acting Comptroller Hsu’s speech earlier this week, and FSOC’s systemic methodology (see FSM Report SYSTEMIC98), noting that the Committee will be consulting on updated supervisory guidance for NBFI risk management later this year.