Federal Reserve Alert! Federal Reserve Board announces the designation of the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2023

Source: https://www.federalreserve.gov/newsevents/pressreleases/other20230110a.htm The Federal Reserve Board on Tuesday announced the designation of the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2023. Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington appoints …

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FDIC Alert! FDIC Quarterly Banking Profile for the 3rd quarter: Number and Assets of Banks on the “Problem Bank List”. FDIC Problem Bank List is a confidential list, published by FDIC every quarter, of U.S. banks and thrifts that are on the brink of financial insolvency

by BoatSurfer600 https://www.fdic.gov/analysis/quarterly-banking-profile/qbp/2022sep/chart8.xlsx FDIC Quarterly Banking Profile for the third quarter: Number and Assets of Banks on the “Problem Bank List”. FDIC Problem Bank List is a confidential list, published by FDIC every quarter, of U.S. banks and thrifts that …

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Federal Reserve and FDIC Alert! The agencies identified two deficiencies in the 2021 plan submission of Credit Suisse AG, which pertain to resolution planning cash flow forecasting capabilities and governance for their U.S. operations.

by Dismal-Jellyfish Source: https://www.fdic.gov/news/press-releases/2022/pr22088.html The Federal Reserve Board and the Federal Deposit Insurance Corporation announced today the results of their joint review of the resolution plans for 71 domestic and foreign banking organizations. Resolution plans must describe a financial company’s strategy …

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Office of Financial Research Alert! OFR finds Hedge Fund Activities Can Influence the U.S. Treasury Yield Curve.

by Dismal-Jellyfish Source: https://www.financialresearch.gov/the-ofr-blog/2022/12/27/hedge-fund-activities-can-influence-the-us-treasury-yield-curve/ The March 2020 stress on the U.S. Treasury market raised questions about the role of hedge funds in the financial system and whether their activities can increase systemic risk. Using a sample of regulatory hedge fund data …

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FICC – MBS Alert! Capped Contingency Liquidity Facility (“CCLF®”) Reset Reminder and Adjustable Percentage Update FICC will change the adjustable percentage from 80% to 90% for purposes of calculating the Defined Capped Liquidity Amount

by Dismal-Jellyfish Source: https://www.dtcc.com/-/media/Files/pdf/2022/12/21/MBS1171-22.pdf What is the Capped Contingency Liquidity Facility (“CCLF®”)? On April 25, 2017, the Commission approved FICC’s adoption of the Clearing Agency Liquidity Risk Management Framework (‘‘Framework’’), which broadly describes FICC’s liquidity risk management strategy and objective to maintain …

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SEC Alert! SEC Charges Financial Services Professional and Associate in $47 Million Front-Running Scheme

Source: https://www.sec.gov/news/press-release/2022-228 The Securities and Exchange Commission today announced fraud charges against Lawrence Billimek, an employee of a major asset management firm with securities portfolios worth billions of dollars, and Alan Williams, who previously worked at several financial industry firms, for …

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SEC Alert! SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX. Defendant concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors

Source: https://www.sec.gov/news/press-release/2022-219 The Securities and Exchange Commission today charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX), the crypto trading platform of which he was the CEO and co-founder. Investigations as to other securities …

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Federal Reserve Alert! Vice Chair for Supervision Michael S. Barr in speech: “We are currently evaluating whether the supervisory stress test that is used to set capital requirements for large banks reflects an appropriately wide range of risks.”

Source: https://www.federalreserve.gov/newsevents/speech/barr20221201a.htm In my first speech as Vice Chair for Supervision in September, I said that the Federal Reserve Board would soon engage in a holistic review of capital standards. My argument, then and now, is that our review of regulatory …

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Federal Reserve Alert! Federal Reserve Board announces annual indexing of reserve requirement exemption amount and low reserve tranche for 2023. To be set at $36.1 million, up from $32.4 million in 2022, and the low reserve tranche will be set at $691.7 million, up from $640.6 million in 2022.

by Dismal-Jellyfish Source: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20221129a1.pdf The Federal Reserve announced the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. The annual indexation and publication of these amounts are required by law and does not indicate a change …

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Federal Reserve Alert! Fed releases Financial Stability Report, their framework for assessing the resilience of the U.S. financial system and presents the Board’s current assessment. They see as vulnerabilities: Asset valuations, Borrowing by business and households, Leverage, and Funding Risks.

Source: https://www.federalreserve.gov/publications/files/financial-stability-report-20221104.pdf Against this backdrop, our view of the current level of vulnerabilities is as follows: Asset valuations. Higher interest rates and a weaker outlook for the economy led prices of financial assets to fall amid heightened volatility, but real estate prices …

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Inflation Alert! Interest payments in the third quarter up 13.59% ($88.125 billion) from last quarter and 24% ($143.667 billion) from this time last year.

by Dismal-Jellyfish Interest costs and the national debt could be even higher if interest rates continue their upward trajectory and outperform CBO’s economic forecast. They planned for this, right?!?!?! CBO estimated CPI inflation will total 4.7 percent in CY 2022, 2.7 …

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S&P Global Flash US Composite PMI Alert! The headline Flash US PMI Composite Output Index registered 47.3 in October, down from 49.5 in September. With the exception of the initial pandemic period, the rate of decrease was the second-fastest since 2009.

via spglobal: Challenging demand conditions and inflation concerns weigh on US private sector in October. Key findings: Flash US PMI Composite Output Index (1) at 47.3 (September: 49.5). 2-month low. Flash US Services Business Activity Index(2) at 46.6 (September: 49.3). 2-month …

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Office of Inspector General Alert! The Inspector General’s Statement on the SEC’s Management and Performance Challenges, October 2022. For FY 2021 the agency’s information security program did not meet accepted reporting metrics’ definition of “effective”

by Dismal-Jellyfish Source As we begin fiscal year 2023, we again identified the following as areas where the SEC faces management and performance challenges to varying degrees: Meeting Regulatory Oversight Responsibilities Protecting Systems and Data Improving Contract Management Ensuring Effective …

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Federal Reserve Alert! A Review of the FOMC Minutes and the speeches from Minnesota Fed President Neel Kashkari, Vice Chair Michael Barr, and Michelle Bowman.

by Dismal-Jellyfish Minutes of the Federal Open Market Committee Sept 20–21, 2022 ‘Highlights’: ‘Participants judged that the Committee needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee’s legislative mandate to promote maximum …

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Federal Reserve Alert! Governor Philip N. Jefferson: ‘Restoring price stability may take some time and will likely entail a period of below-trend growth. However, I want to assure you that my colleagues and I are resolute that we will bring inflation back down to 2 percent.’

October 04, 2022 Technology’s Impact on the Post-Pandemic Economy Governor Philip N. Jefferson At “Technology-Enabled Disruption: Lessons from the Pandemic and the Path Ahead,” a conference organized by the Federal Reserve Banks of Atlanta, Dallas, and Richmond Good morning, and …

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