Bank boards might see less directives from the Federal Reserve if Jerome Powell has his way. The Federal Reserve Governor would like to allow banks’ board of directors to spend more time worrying about management and less time on day to day tasks. He also acknowledges the industry’s frustration with the lack of transparency in the CCAR, and would like to amend it to make it more efficient and effective.
Read More »Fed Removes ‘Patient’ Pledge after FOMC Meeting
Despite removing the “patient” policy, the Federal Open Market Committee remained steady on the belief that interest rates will not increase by their April meeting. Fed Chair Janet Yellen emphasized in a press conference following the meeting, the removal of the pledge doesn’t mean Fed rates will increase by June.
Read More »Fed Considers Removing ‘Patient’ Pledge on Raising Interest Rates
In recent interviews, the Fed has made it clear they want to move away from the pledge to be patient. They have held their benchmark short-term rate, the federal funds rate, near zero since December 2008. The lackluster housing market was concern on Yellen’s mind when she gave the speech emphasizing the patience pledge.
Read More »Transcripts Show Ben Bernake was ‘Uncomfortable’ With Bank of America Bailout
In January 2009, Bank of America received its second bailout of $20 million from the Fed to help stabilize the company after its purchase of Merrill Lynch. At the time, Merrill Lynch had lost more than $15 billion in the previous quarter and Bank of America had lost $2.4 billion.
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