Banking

Democratic senators prompt Fed to examine bank merger policy

Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and 3 Democratic committee members today advised the Federal Reserve to examine and reevaluate its technique to big bank mergers, consisting of the company’s structure for assessing a merger’s effect on monetary stability.

In their letter, the senators kept in mind the Dodd‑Frank Act consisted of a modification to the Bank Merger Act that mandated federal banking regulators think about monetary stability in assessing bank mergers. The Fed has actually not provided any guidelines or assistance suggesting the kinds of bank mergers that would link monetary stability issues, they stated.

“We hope that, following the failures of [Silicon Valley Bank], Signature Bank and First Republic Bank, and the acquisition of Credit Suisse by UBS, we will see real changes to the bank merger process to protect financial stability and ensure that we have a fair and competitive banking system that serves all communities,” they stated. The letter was guaranteed by Sens. Jack Reed (D-R.I.), Elizabeth Warren (D-Mass.) and John Fetterman (D-Pa.).

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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