FEDERAL RESERVE EXPECTED TO RAISE INTEREST RATES FOR THE SECOND TIME THIS YEAR ON WEDNESDAY 1/1Federal Reserve expected to raise interest rates for the second time this year on Wednesday (CNN) – The Federal Reserve is poised to raise interest rates for the second time this year on Wednesday, at the end of a two-day policy meeting. Policy makers signaled last month they would raise rates if the economy kept performing as expected. The Fed is expected to bump up the federal funds rate by a quarter of a percentage point. While a rate hike on Wednesday seems certain, policy makers are closely divided on whether to raise rates a total of three times this year or four. … [Read more...] about Federal Reserve to Raise Interest Rates?
The Federal Reserve Board on Tuesday announced the execution of the enforcement action listed below: Consent prohibition of Ashley Burrus, former Financial Services Specialist of Regions Bank, Birmingham, Alabama, for engaging in improper practices regarding credit origination. The Board also announced the termination of the enforcement action listed below: Patterson Bankshares, Inc., Patterson, Georgia Written Agreement dated June 1, 2010 (PDF) Terminated June 7, 2018 Additional enforcement actions can be searched for here. For media inquiries, call 202-452-2955. … [Read more...] about Federal Reserve Board issues enforcement action with Ashley Burrus and announces termination of enforcement action with Patterson Bankshares, Inc.
The Federal Reserve Board on Wednesday announced its approval of the application under section 3 of the Bank Holding Company Act of 1956 by TriCo Bancshares, Chico, California, to merge with FNB Bancorp and thereby indirectly acquire FNB Bancorp's subsidiary bank, First National Bank of Northern California, both of South San Francisco, California. Attached is the Board's order relating to this action. For media inquiries, call 202-452-2955. … [Read more...] about Federal Reserve Board announces approval of application by TriCo Bancshares
Dear John: I believe the Fed should continue to raise rates even if — as you point out — “the economy isn’t really ready for it.” Two wrongs don’t make a right. The Federal Reserve should have never taken rates to near 0 percent in the first place. It actually hurts the banking industry — something the Fed claimed it was trying to bail out at the time. Secondly, keeping rates at near 0 percent for over seven years was also a huge mistake, as it starves many investors of income they should be paid. Moreover, it has encouraged many — especially corporations that have borrowed more than $4 trillion in debt since the crisis — to become overleveraged again. When the next recession comes, the powers that be should allow bad loans to be written down, and then finally move forward. The endless cycle of quantitative easing and below inflation-level rates is only turning our economy into Japan, which has had the lowest gross domestic product … [Read more...] about The Federal Reserve must persist despite the economy
Big U.S. banks snagged another big victory Wednesday as federal regulators voted to ease one of the industry's most despised regulations. The Federal Reserve approved sweeping changes to the "Volcker Rule," which was established after the global financial crisis to prevent taxpayer-insured banks from making some risky financial bets. Banks, which have complained for years that the rule is too cumbersome and time-consuming, will gain new flexibility in deciding when a trade is too risky if the proposal is finalized. "Our goal is to replace overly complex and inefficient requirements with a more streamlined set of requirements," said Fed Chairman Jerome Powell. Consumer advocates worry that even a slight easing of the standards could open the door for the type of risky trading that contributed to the near collapse of the economy a decade ago. "This proposal is no minor set of technical tweaks to the Volcker Rule, but an attempt to unravel fundamental elements of the response to the 2008 … [Read more...] about Federal Reserve scales back ‘Volcker Rule’ limits on bank trading