The federal banking regulators issued a new proposal Friday asking for further public comment on changing the definition of a “high volatility commercial real estate exposure.”
The industry is urging federal regulators to go further in streamlining oversight of foreign banks and resolution-planning requirements. Critics warn that the proposals could weaken post-crisis safeguards.
Loans to other financial firms have soared in recent years, and many are going to private equity or business development firms that then use the funds to make leveraged loans. Should regulators be worried?
The new rule, subject to approval by the Office of Management and Budget, would enable FDIC-supervised institutions with less than $5 billion in assets to use a shorter form every other quarter.
The ban, which came to light Monday, will remain in effect until either the final disposition of Stephen Calk’s court case or until it is terminated by Comptroller Joseph Otting.
