The expansion of the Federal Reserve’s portfolio of Treasury debt and mortgage-backed securities has a bigger impact on the credit markets than paying banks interest on excess reserves.
Contrary to others’ opinion, interest on excess reserves is part of the Federal Reserve’s monetary policy that serves to reduce volatility and encourage growth.
More business lending is shifting from banks to "murky" trusts as the government imposes more restrictions to reduce risky loans; 11 states advance suit as Justice Department retreats.
The Consumer Financial Protection Bureau is in the direct crosshairs of a federal lawsuit questioning its leadership structure. But it might be the independence of all federal agencies on trial.
Fed Gov. Jerome Powell says central bank will provide more information to banks about how it conducts annual tests; bank CTO discusses its 2018 blockchain test.
The Fed is working on providing a more helpful guide to affected banks on how the central bank’s testing models work and taking a lighter touch to supervising bank boards.
