Posts Tagged ‘SIFI’
Does the Fed’s relentless grip on Wells Fargo’s balance sheet herald a new compliance regime?
Remedy will likely remain a one-off action The Federal Reserve’s limit on Wells Fargo’s balance sheet growth – now two and a half years and counting – has caused the bank to reconstitute its corporate governance structure and control functions in an earnest effort to meet the Fed’s conditions for removal. This unusual remedy has…
Read MoreGovernment Removes AIG’s “Systemically Important” Label: Reading the Tea Leaves
On September 29, the Financial Stability Oversight Council (FSOC) removed AIG’s designation as a systemically important financial institution (SIFI), relieving it of significant regulatory burdens, such as stress testing by the Fed and high capital requirements. FSOC is the chief regulator of systemic risk put in place by the Dodd-Frank Act. In its own words,…
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