(CNBC) Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday.
“There is a need to supplement prudential bank regulation with a third set of policy options in the form of regulatory tools that can be applied on a market-wide basis,” Tarullo said at a conference on shadow banking.
He also detailed the Fed’s plans to write new rules that would make it less attractive for banks to raise cash in short-term wholesale funding markets, a key factor in the collapse of Lehman Brothers in 2008.
Banks that substantially rely on short-term funding in the interbank market should be required to hold more capital on top of what is already mandated by international rules under the so-called Basel III pact, Tarullo said.
Tarullo, who is the central bank’s main policymaker on financial regulation, announced earlier this year that the Fed was working on a short-term funding rule.
He said that international regulators should also consider ramping up capital requirements for matched books of repurchasing—or repo—agreements, which are a prominent part of the shadow banking system.
“Current versions of capital and liquidity standards do not deal with matched book issues,” he said.
Thirdly, regulators should address risk in such transactions regardless of whether they were executed by banks or by other market participants, such as hedge funds.
The Financial Stability Board, in which global regulators cooperate, was already working on plans to do so, Tarullo said, but he said he disagreed with some of the details and presented some alternative ideas.
My money is my money. If I want to clean out my bank account, I’m damn well going to do so. I only have it as a (slight) convenience. Otherwise I’m all about cash. This talk of charging to deposit money will be the last straw. I will close my accounts faster than you can say, “It’s the jews stupid”. Fuck ’em.
If I want to pull out mu funds from ANY bank no one should be able to stop me. Why? Because they are MY funds. If I want to pull them out of a criminal banking system, EG: Bank of America, Chase, Wells Fargo. It is not legally acceptable to try to stop me for any reason and any law written to stop me from doing so is just as criminal as the people who own and operate the criminal banks. Any politician who gets involved in the passing of laws that support criminal banking are also just as criminal if not more so.
Death is an occupational hazard of crime. You takes your chances when you places your bets.
Timeout 1 Just like it is a gamble to expect that posts will post the first time submitted at Pakalert Press.
Timeout 2
First it was the delayed loading with adcito and now it is the one minute delayed page loading every time. that followed by multiple time outs when submitting a post gives me all the impression that the same company that set up the ACA website did the work for Pakalert Press.
If I want to pull out mu funds from ANY bank no one should be able to stop me. Why? Because they are MY funds. If I want to pull them out of a criminal banking system, EG: Bank of America, Chase, Wells Fargo. It is not legally acceptable to try to stop me for any reason and any law written to stop me from doing so is just as criminal as the people who own and operate the criminal banks. Any politician who gets involved in the passing of laws that support criminal banking are also just as criminal if not more so.
Death is an occupational hazard of crime. You takes your chances when you places your bets.
Timeout 1 Just like it is a gamble to expect that posts will post the first time submitted at Pakalert Press.