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Either the new Federal Reserve Chairman Janet Yellen is a prepper, or there is something afoot in the world of banking. Bankers typically talk in terms of contingency plans and liquidation programs, not prepping for disasters.
In January of this year, Supervisory Regulation (SR) 14-01 was issued in regarding the need for bank preparedness particularly for the eight bank holding companies (BHCs) in the United States. According to the memo, there are eight Bank Holding Companies that appear to be at risk and that risk threatens the financial stability of the United States. These eight companies are Bank of America Corporation, Bank of New York Mellon Corporation, PLC, Citigroup Inc., Goldman Sachs Group, Inc., JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company.
The memo, dated January 24, was the first one of the year. It was sent from Michael Gibson to the top banks to stress increased supervisory expectations.
Shortly after the “increased supervision” of the big eight, customers at other banks started getting notices of bank drills where services will be limited.
A similar email advisory went out to all of their customers. The Bank of Arizona, Bank of Oklahoma, and the Bank of Texas have all been mentioned as having this drill.
WASHINGTON, Feb 5 (Reuters) - A top U.S. bank regulator plans to tell lawmakers on Thursday that final leverage rules for U.S. banks will incorporate recent revisions to a global capital standard, which likely means tougher requirements for the institutions.
U.S. regulators proposed rules in July to limit the extent to which banks may fund their activities through debt, part of the Basel III global agreement to boost banks' capital levels.
In January, the international group revised the way it requires banks to calculate whether they are meeting the leverage requirements. That latest version is seen as somewhat tougher on banks than the method U.S. regulators initially proposed for firms operating in the country.
U.S. bank leverage rules to include global revisions -Fed governor
"Eight domestic bank holding companies that may pose an elevated risk to US financial stability"
Isn't this how it all started in Cypress and Greece?
reply to post by Bassago
So, maybe we should make some withdrawals before these "disaster drills" take place.
Maybe. If you bank at the Bank of Oklahoma.edit on 2/7/2014 by Phage because: (no reason given)
Here the Fed and banks seem to be looking to external disaster preparedness.
Through horizontal comparisons, Federal Reserve supervisory staff has observed a range of capabilities which are critical to certain large bank holding companies’ operational resilience and contingency planning in circumstances where capital and liquidity buffers are strained and to the resiliency of the financial system as a whole. Specifically, a bank holding company subject to this guidance should have:
But the letter is talking about Bank of Oklahoma.
reply to post by UxoriousMagnus
Isn't this how it all started in Cypress and Greece?
Well a little maybe. Here the Fed and banks seem to be looking to external disaster preparedness. With Cyprus they were crumbling internally under bad loans, corruption and...
do you think this "preparedness" could be a result of China pushing heavily for the USD being removed as the international standard?
So what I'm getting here is the Fed telling banks to stress test to ensure compliance with Dodd-Frank and the Bank of OK is saying it's because of tornado's and floods. . ? Maybe I'm reading this wrong.
According to the memo, there are eight Bank Holding Companies that appear to be at risk and that risk threatens the financial stability of the United States. These eight companies are Bank of America Corporation, Bank of New York Mellon Corporation, PLC, Citigroup Inc., Goldman Sachs Group, Inc., JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company.
The objective of such studies is to acquire the know-how to set the public economy into a predictable state of motion or change, even a controlled self-destructive state of motion which will convince the public that certain "expert" people should take control of the money system and reestablish security (rather than liberty and justice) for all. When the subject citizens are rendered unable to control their financial affairs, they, of course, become totally enslaved, a source of cheap labor.
Not only the prices of commodities, but also the availability of labor can be used as the means of shock testing. Labor strikes deliver excellent tests shocks to an economy, especially in the critical service areas of trucking (transportation), communication, public utilities (energy, water, garbage collection), etc.
By shock testing, it is found that there is a direct relationship between the availability of money flowing in an economy and the real psychological outlook and response of masses of people dependent upon that availability.
I don't see anything about stress tests from the Fed. Just a friendly reminder to the 8 to mind their Ps and Qs to avoid the same kind of crap that triggered the banking mess previously.