American Banker Podcast
2023 was a rough year for bank regulators. What might 2024 bring?
Dec 5, 2023
The podcast discusses the criticisms of national bank regulators and their oversight failures. It explores the collapse of Silvergate Capital and the role of the Federal Reserve in preventing bank failures. The effects of the Federal Reserve's interest rate policy on banks' balance sheets are explored. The closure of Signature Bank and its involvement with crypto-related firms is discussed. The importance of keeping politics out of bank regulation is emphasized.
17:08
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Quick takeaways
- The recent bank failures highlighted the need for regulators to evolve their supervisory approaches and adequately scrutinize risks, especially for banks with novel business models.
- The toxic workplace allegations at the FDIC underscored the importance of creating a healthier working environment and improving the handling of employee concerns within regulatory agencies.
Deep dives
Regulators' Role in Bank Failures
The podcast discusses the role of regulators in the recent bank failures, also known as the 'mini bank crisis' or 'S bank crisis.' Reports from the Office of Inspector General for the Federal Reserve Board and the CFPB revealed that supervisory approaches had not evolved with banks' growth and increased complexity. They also noted failures in requiring board approval and implementing conditions for banks with novel business models. While the failures primarily resulted from banks' risk management practices, the Fed acknowledges its own shortcomings in adequately scrutinizing risks. The impact of the Federal Reserve's interest rate policies on bank balance sheets is also examined.
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