US Fed Ramps up Demands for Corrective Actions by Regional Banks
The comments below are an edited and abridged synopsis of an article by Reuters
The Federal Reserve has issued a slew of private warnings to lenders with assets of $100 billion to $250 billion as part of increased efforts to tighten supervision, according to Bloomberg News.
Among the banks given warnings were Citizens Financial, Fifth Third Bancorp and M&T Bank Corp.
The notices touched on a wide range of issues including lenders’ capital and liquidity as well as technology and compliance.
The banks and the Fed declined to comment.
Banks are dealing with the aftermath of the biggest crisis to hit the sector since 2008, which saw three mid-sized lenders collapse earlier this year.
The failures exposed vulnerabilities of lenders to rising interest rates and showed how fast spooked customers can pull deposits, triggering a bank run.
