Politics

The rules President Joe Biden calls for include minimizing the financial burden that replenishing the Deposit Insurance Fund would impose on community banks.

The inspector general linked the problems to staff turnover and recommended improvements to policies around documentation that the housing agency agreed to make.

Acting Comptroller of the Currency Michael Hsu urged the banking industry to not let safety and soundness concerns overshadow fairness in banking, which he said is an equally crucial aspect of market stability.

Yellen focused on the danger of "fire sales," where panic spurs investors to dump assets at prices below their fair value. Among the targets needing attention are non-bank financial intermediaries, from money-market funds and hedge funds to digital asset providers.

Federal Reserve Vice Chairman for Supervision Michael Barr said that regulators and bank management failures contributed to the bank collapses, but insisted rescue of uninsured deposits was warranted.

The new foreclosure prevention option will be available for servicers' use on a voluntary basis starting on July 1 and will become mandatory in situations where it's appropriate for borrowers beginning Oct. 1.

Speaking at a Consumer Bankers Association conference in Las Vegas, Consumer Financial Protection Bureau director Rohit Chopra said speedy communication channels represent "an opportunity and a risk."

If the proposal goes into effect, lenders and servicers will have to provide more detailed information about the makeup of their organization, as well as any incidents that are impacting their financial wherewithal.

The requirement to use supplies made in this country will negatively affect home affordability, according to a coalition of 24 groups and individuals led by National Housing Coalition.

The use of the Federal Reserve's emergency lending facilities was largely unchanged this week, indicating to some that the recent liquidity crisis isn't getting any worse.

The two companies state the agency's anticompetitive claims about the deal are wrong, and claim that their in-house hearing is unconstitutional.

The Federal Reserve wants a smaller balance sheet to help rein in inflation. But uncertainty in the banking system is pushing it in the opposite direction.

A federal appeals court ruled in favor of the Consumer Financial Protection Bureau, setting up a court split ahead of a highly anticipated Supreme Court hearing in October. The Fifth Circuit previously ruled that the agency's funding mechanism violates the Constitution's separation of powers doctrine.

Economists have warned since last summer that speedy monetary tightening could be destabilizing. This week, the Federal Reserve will decide whether to stay on that course.

The incentive structures for both banks and large, sophisticated depositors have changed because of federal regulators' decision to guarantee the uninsured deposits of Silicon Valley Bank and Signature Bank.

In prepared remarks to the American Bankers Association, Treasury Secretary Janet Yellen says the government's intervention to cover uninsured deposits at Silicon Valley and Signature banks "reduced the risk of further bank failures."

The $1.25 trillion-asset Home Loan Bank System collectively issued $303.9 billion in discount notes and bonds last week, with demand tapering dramatically from $111.8 billion on Monday to $21.7 billion by Friday.

On Monday, the top banking Republicans in both chambers laid blame for Silicon Valley Bank and Signature Bank's failures on the Federal Deposit Insurance Corp. and Federal Reserve, and they asked the agencies for a full autopsy of what went wrong.

FDIC Chairman Martin Gruenberg and Federal Reserve Vice Chair for Supervision Michael Barr are scheduled to appear before the House Financial Services Committee later this month to answer questions about the collapse of Silicon Valley Bank and Signature Bank. The hearing will be bipartisan, the committee's Republican chairman and its top Democrat said.

A preliminary injunction in federal district court had put the 2020 rule on hold, and the move will officially reverse it.