The Latest Breaking News from FDIC

Late in 2018, two Trump-appointed banking regulators, Federal Reserve Vice Chair Randal Quarles and FDIC Chair Jelena McWilliams, went on a nationwide tour to meet with regional bank examiners.

The stock market rally staged a follow-through day on Wednesday, confirming the rally. Banking fears waned, while earnings and other corporate news were positive and inflation cooled.

Shares in regional lender First Citizens skyrocketed this week after scooping up SVB on the cheap, prompting questions from Congress whether the FDIC negotiated a poor deal that will now cost banks $20 billion.

Exception-based coverage signals to depositors that they might get some extra protection at a systemically important bank–and compounds risk.

The administration wants to reverse some Trump-era policies

President Joe Biden is expected to tighten regulations on banks, prompted by the biggest banking collapse since the 2008 crisis

WASHINGTON — A bipartisan group of senators released draft legislation Wednesday that would claw back executive pay in the five years leading up to a bank’s failure, following President Joe Biden’s call on Congress to take action.

Four senators from both parties released a draft bill to claw back executive compensation in the five years leading up to a bank failure.

A group of conservative Republicans representatives known as the House Freedom Caucus came out last week against any proposal that would lift the cap on deposit insurance, currently set at $250,000. Members of U.S. Congress on both sides of the aisle are understandably cautious about taking such a dramatic step…

The failure of Silicon Valley Bank on March 10, 2023, came as a shock to most Americans. Even people like myself, a scholar of the U.S. banking system who has worked at the Federal Reserve, didn’t expect SVB’s collapse.

Amid all the finger-pointing, Senators and speakers said more monitoring was needed in the banking sector.