Category Archives: FDIC

Will a Failed Megabank Be Liquidated? Don’t Bet On It

By | April 17, 2018

A vast literature has arisen discussing the tortured issue of taxpayer-funded bail-outs and the intimately related concept of ‘Too Big to Fail’ (TBTF). The idea behind it is relatively simple. TBTF describes a financial institution whose failure would cause such a tremendous level of harm to the economy that the responsible government will attempt to… Read More »

Comptroller’s Remarks Indicate the Fintech Charter Could Lead to Mixing of Banking and Commerce

By | October 2, 2017

Drowned out by yet another busy news cycle last week were Acting Comptroller of the Currency Keith Noreika’s remarks at a fintech conference held at the Federal Reserve Bank of Philadelphia. However, these comments should not be overlooked, as they have the potential to upend the banking industry in this country by tearing down the… Read More »

New Legislation Designed to Make the U.S. a Fintech Leader

By | November 17, 2016

In his book Stress Test, former Treasury Secretary Tim Geithner vividly describes the difficulty he encountered in trying to get the various federal financial regulators to go along with the Obama administration’s post-crisis regulatory reform agenda.  In the summer of 2009, after the Treasury Department released the details of their proposal, regulators swarmed Capitol Hill… Read More »

Using Living Wills to Break up Big Banks

By | October 11, 2016

One of the key areas of focus during Wells Fargo CEO John Stumpf’s recent congressional testimony, was the timeline of events that led up to him becoming aware of the problems within the company’s community banking division.  Despite the fact that the firm fired over 1,000 employees in 2011 for opening unauthorized customer accounts, and… Read More »