Five years after one of the most costly financial crises in U.S. history, the 18 largest banks still fall short in at least one of five areas critical to risk management and capital planning, the Federal Reserve said.
Patrick Parkinson, the Federal Reserve’s head of bank supervision, plans to retire on Jan. 1, to be replaced by Michael Gibson, a deputy director in the division of research and statistics, the central bank said.
In November 2009, Senate Banking Committee Chairman Christopher Dodd advanced a radical proposal: to create a super-regulator that would take over most of the bank supervision that had been done by the Federal Reserve System, the Federal Deposit Insurance Corp. and other agencies.
The Federal Reserve Bank of New York employees who analyze American International Group Inc.’s finances report to work each day at the New York Fed even though their supervisors are at the Treasury Department in Washington.
The Federal Reserve Bank of Chicago failed to halt speculative real estate lending that led to losses at banks in Indiana and Michigan that were later closed, the central bank’s inspector general said.