- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-09-03T15:47:00
The Federal Reserve Board will require more than 30 of country’s largest banks to maintain a minimum percentage of capital in reserve, a percentage which the Fed calculated based on their complexity and whether they are considered a global systemically important bank.
The capital requirements, which take effect Oct. 1, affect 32 banks and holding companies with $100 billion or more in assets, the Fed announced in a press release Wednesday. Previously, capital requirements were only imposed on financial institutions with more than $700 billion in assets, a threshold which applied to a small number of very large banks, the Fed noted.
The move to increase capital requirements was made in response to the collapse of three mid-sized banks in 2023: Silicon Valley Bank, Signature Bank, and First Republic Bank.
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The Federal Reserve Board will propose increasing capital standards for large banks and holding companies to build up the banking system’s resiliency against unanticipated market shocks.
The White House, Department of the Treasury, and other federal banking regulators swung into action over the weekend to prevent the failure of two banks with $264 billion in combined deposits from turning into a full-blown economic crisis.
Banking regulators unveiled new stress test requirements for the largest financial institutions, including a series of hypothetical global market shocks six banks will be required to face.
The U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency has created a new online portal for organizations to voluntarily report cybersecurity incidents, including ransomware attacks.
The Treasury Department’s Financial Crimes Enforcement Network released new anti-money laundering requirements for U.S. investment advisers and real estate professionals that attempt to close loopholes that criminals and kleptocrats have long exploited.
A federal judge struck down the ban on noncompete clauses by the Federal Trade Commission that was set to take effect in September.
