FDIC to toughen up
Federal Deposit Insurance Corp Chairman Sheila Bair is working with support from Federal Reserve officials to push for tougher measures on the biggest banks. They want to keep the size and risk-taking of the nation's largest financial firms in check by handing out fees. The proposition goes beyond the Obama administration's regulated plans, which originally had the Fed adjust capital and liquidity standards.
Federal Reserve Chairman Ben Bernanke is in agreement that financial disincentives should be offered to the financial firms taking on more size and complexity. The new proposals go against the past, which typically promoted large and diversified institutions. For decades the bigger and more diversified a financial institution became, the more immune they were to risks. Bank of America Corp, JPMorgan Chase & Co and Citigroup Inc are potential candidates that could be hit with special fees against them.
The urge to promote tougher regulations against large financial institutions has the dollar's currency exchange rates at GBP1.6428 and EUR1.4103.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.