The U.S. Chamber of Commerce called for delaying approval of the Volcker rule ban on proprietary trading by banks as regulators approach a year-end deadline set by the White House to complete the proposal.
Federal Reserve Governor Daniel Tarullo said regulators are writing a final version of the Volcker rule to block any repeats of JPMorgan Chase & Co.’s $6.2 billion in losses last year from derivative bets by a trader dubbed the London Whale.
Federal Reserve Governor Daniel Tarullo urged regulators to set market-wide minimums for safety margins on loans backed by securities and favored high capital requirements for banks that rely heavily on non-deposit funding.
Federal Reserve Bank of Boston President Eric Rosengren said big international banks with broker-dealer operations pose risks to financial stability, and regulators need to ensure the firms hold sufficient capital.
Janet Yellen is poised to take charge of a Federal Reserve System where boardroom dissent has become increasingly rare, making the central bank’s governing body an unusual example of harmony in a divided capital.
Federal Reserve Governor Daniel Tarullo said creditors could penalize the largest banks with higher interest rates or desert them entirely if the government doesn’t clarify plans for winding down firms near collapse.
Federal Reserve Governor Daniel Tarullo warned of persistent risks in wholesale funding markets while saying a rule proposed by the Fed requiring banks to hold minimum liquidity levels will help prevent fire sales of assets.
Federal Reserve Governor Daniel Tarullo said setting policies to contain the risk of fire sales in short-term funding markets should be the “highest priority” as policy makers consider additional steps to reduce the danger of another financial crisis.