Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen correspondent: The fifth round of Iran-US talks ended after three and a half hours.
Al Mayadeen's correspondent: The fifth round of indirect talks between Iran and the United States has begun at the headquarters of the Sultanate of Oman's mission in Rome.
Turkish public prosecutor has issued arrest warrants for 63 active-duty military personnel over alleged links to a group accused of orchestrating the 2016 coup attempt
Kremlin says no agreements yet on next platform for Russia-Ukraine negotiations
YAF spokesperson: We targeted Lydd Airport, known as Ben-Gurion Airport, with a hypersonic missile
Al Mayadeen's correspondent in Lebanon: Two Israeli airstrikes targeted Wadi al-Aziziya in the Tyre district.
CIA spokesperson says law enforcement responded to a security incident outside CIA headquarters.
Brigadier General Saree: Operation achieved its targeted successfully, forcing millions of Zionists to flee to shelters, and halted air traffic at the airport.
YAF spokesperson: We've executed a military operation targeting Ben Gurion Airport in occupied Yafa with ballistic hypersonic missile.
IOF warning forces residents to evacuate and head South in preparation for expansion of aggression.

US Fed says banks to raise capital to survive financial crises

  • By Al Mayadeen English
  • Source: Agencies
  • 16 May 2023 21:46
2 Min Read

Federal Reserve Vice Chair for Supervision Michael Barr says in a congressional hearing that the lack of capital liquidity and safeguards are the biggest reasons for the US financial crisis.

  • x
  • The federal Reserve building, center, rises high over the skyline of Richmond, Va., on Dec. 4, 2017 (AP Photo/Steve Helber, File)
    The Federal Reserve building, center, rises high over the skyline of Richmond, Va., on Dec. 4, 2017 (AP Photo/Steve Helber, File)

Private banks in the US may need to raise capital to deal with increased numbers of defaults on loans, the Federal Reserve Vice Chair for Supervision, Michael Barr, said at a congressional hearing by the US House Financial Services Committee on Tuesday.

"The Federal Reserve generally does not require additional capital or liquidity beyond regulatory requirements for a bank with inadequate capital planning, liquidity risk management, or governance and controls. I believe that needs to change in appropriate cases," Barr told the committee.

Barr pointed to the need for larger capital requirements which would serve "as an important safeguard until risk controls improve, and they can focus management’s attention on the most critical issues."

Related News

Trump says third term 'not something I'm looking to do'

Trump says not to fire Fed chair, hints at lowering China tariffs

Several US banks faced liquidity issues as customers rushed to withdraw their deposits as uncertainty around the stability of Western economies and currencies grows. The US Federal Reserve rushed to bail out or sell the troubled financial institutions.

Banks with assets totaling $50 billion or more will have to come up with $16 billion to pay for the bill of failed banks, the Federal Deposit Insurance Corporation (FDIC) stated.

Theoretically, the ruling applies to almost every US bank, however, the banks that hold $50 billion in assets are expected to pay for 95% of the total fee while banks with assets less than $5 billion will not take part in the process, the FDIC underscored.

Barr's testimony came a day after Federal Reserve System's branch in New York revealed that Americans were increasingly defaulting on credit card and car loans in comparison to the period COVID-19 US central bank. Currently, the US consumer debt has surpassed $17 trillion marking the highest ever amount in the country's history.

The Fed pointed to the lack of safeguards as the main culprit of the banking crisis, even though Barr aimed criticism at the central bank's lack of supervision and its failure to identify red flags around the issue.

  • Federal reserve
  • US Federal Reserve
  • US

Most Read

YAF say struck 'Israel's' Ben-Gurion Airport with missiles, drones

YAF say struck 'Israel's' Ben Gurion Airport with missiles, drones

  • MENA
  • 18 May 2025
Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza

Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza

  • MENA
  • 17 May 2025
Rachel Accurso criticized for speaking out on Gaza children crisis

Ms. Rachel accused of antisemitism for speaking out for Gaza children

  • Politics
  • 20 May 2025
Martyrs, injuries in violent Israeli bombardment of southern Gaza

Israeli operation fails; IOF launch violent strikes on Gaza

  • Politics
  • 19 May 2025

Coverage

All
War on Gaza

Read Next

All
Eric Coquerel, a parliament member of the far-left La France Insoumise (The Unbowed) party attends a demonstration outside Sciences-Po university in Paris, Friday, April 26, 2024 (AP)
Politics

French teacher suspended for minute of silence in solidarity with Gaza

Palestinian landlord Akram Sabra, 60, stands next to a vehicle burnt under attack by Israeli settlers overnight, in the West Bank village of Bruqin, near Salfit Friday, May 23, 2025. (AP Photo/Nasser Nasser)
Politics

Israeli settlers torch homes, vehicles in West Bank village

Iranian Foreign Minister Abbas Araghchi, left, reads a paper in a meeting with his Omani counterpart Sayyid Badr Albusaidi at the Omani Embassy in Rome during the fifth round of Iran-US negotiations, Friday, May 23, 2025 (Iran Foreign Ministry)
Politics

Iran-US talks in Rome yield limited progress, Omani FM says

AP
Politics

EU sought ship, port, energy ties in nixed proposal to Trump: Report

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS