Fed weighs tighter restrictions on foreign banks in rare Trump-era move
By Victoria Guida
The Federal Reserve may soon tighten restrictions on foreign banks to prevent them from relying too much on the U.S. central bank in a crisis, a move that’s likely to face pushback from the industry, Republicans in Congress and other countries. The Fed, under leaders appointed by President Barack Obama, ramped up oversight of foreign banks after the 2008 financial crisis, when those lenders borrowed heavily from the central bank and pulled many of those dollars out of the country. …“The regime under [Fed Chairman Jerome] Powell is slowly taking shape, and it’s not one-sided deregulation,” said Karen Petrou, managing partner of Federal Financial Analytics.