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...Since 1991, federal law has subjected the FDIC to a “least cost test”....
...Last week, private equity firm Brookfield sent a letter to the FDIC claiming the auction process had been “secretive” and warned it may contest the outcome....
...The move ends a stand-off between the banking regulator’s Democratic leadership and its two Republican board members, who last week called for FDIC chair Martin Gruenberg to recuse himself from the inquiry...
...Even if that were to happen, Bair said the turmoil at the FDIC would not stop the implementation of newly proposed capital rules — so-called Basel III Endgame — that are opposed by the industry....
...“It’s quite clear that we’ve had employees at the FDIC subjected to horrendous experiences that simply are unacceptable and can’t be tolerated,” Gruenberg said. Read more on the FDIC here...
...The FDIC takes over US lenders when they fail and brokers deals to sell what remains....
...Gruenberg said Baker Hostetler would lead an independent “top to bottom” assessment of the FDIC’s workplace and the alleged conduct....
...Read more about FDIC here....
...Delinquencies in credit card and commercial real estate loans were on the rise, the FDIC said, and were now at the highest level in almost a decade....
...The FDIC was the primary federal regulator for both First Republic and Signature before they collapsed....
...The FDIC’s first in-depth report into California-based First Republic’s collapse in April put the blame squarely on “a loss of market and depositor confidence” that had been triggered by the earlier failure...
...In 2020, the FDIC’s inspector-general found that the agency’s sexual harassment policies were inadequate at preventing abuse. The FDIC at the time vowed to improve its practices....
...Ponzi (New York Magazine) — Former Fed vice chair Randal Quarles on bank-capital regs, SVB and stress tests (Intrafi’s ‘Banking with Interest’ podcast) — Nelson Peltz vs Bob Iger, The Sequel (Puck) — FDIC...
...An FDIC spokesperson did not immediately respond to a request for comment from Gruenberg....
...Brookfield Property Group said the FDIC was running a “secret” process to sell Signature Bank loans....
...Nonetheless, the FDIC indicated that most of the banks on the list were either small or mid-sized lenders....
...The relatively high cost of deposits should make the FDIC’s new rules more palatable for lenders....
...The group will purchase its 20 per cent equity stake in the joint venture for $1.2bn, while the FDIC will own the remaining 80 per cent....
...However, unlike a Federal Reserve report into its supervision of SVB, the FDIC assessment of its actions on First Republic did not find significant regulatory concerns had gone unaddressed....
...FDIC chair Martin Gruenberg said BakerHostetler would lead an independent “top to bottom” assessment of the FDIC’s workplace and the alleged conduct....
...The FDIC also confirmed on Wednesday that the overall profits of US banks neared $80bn in the first quarter, an all-time high, as the FT reported earlier this month....
...US banks now hold $1.40 in reserves for every dollar of delinquent commercial real estate loans, down from $2.20 a year ago, according to the FDIC data, and the lowest cover banks have had to absorb potential...
...The FDIC discloses the number of banks on its problem list, but not the names. Read more about the FDIC fund here...
...This week, the FDIC grumbled that some banks were relying on suspect methodology to calculate uninsured deposits....
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