Seeking Alpha

Fed special unit to give extra scrutiny to 15 firms

  • Goldman Sachs (GS) and Morgan Stanley (MS) are on a Fed list of 15 U.S. and foreign financial firms that "may pose elevated risks to U.S. financial stability" and so will receive extra supervision by a cross-disciplinary special unit called the Large Institution Supervision Coordinating Committee.
  • Other firms on the list include JPMorgan (JPM), Bank of America (BAC), AIG (AIG), GE (GE), Citigroup (C), Wells Fargo (WFC), State Street (STT), Prudential Financial (PRU), Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB) and UBS (UBS).
  • As a major clearing and custody bank, Bank of New York Mellon (BK), will also receive the extra attention.
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Comments (28)
  • bbro
    , contributor
    Comments (9725) | Send Message
     
    And you wonder why the economic growth is anemic....
    2 May, 03:47 AM Reply Like
  • OneCitizen
    , contributor
    Comments (82) | Send Message
     
    You believe this scrutiny is unwarranted ?
    2 May, 04:27 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1555) | Send Message
     
    YES!
    2 May, 09:29 AM Reply Like
  • DUP
    , contributor
    Comments (198) | Send Message
     
    Funny stuff, the Gov't telling banks how to not be criminals! hahahahahahahahaha, have you seen congress lately? What a goof! Have you seen the regulators div of the gov't...all them experts, all them con artists, I plead the 5th, after telling everyone I did nothing wrong, and goes into hiding, those folks are gonna keep the banks in order!!! We are DOOMED....
    2 May, 05:42 AM Reply Like
  • vman
    , contributor
    Comments (149) | Send Message
     
    Dammed if you do... Dammed if you don't.... If they had already been doing their job BAC wouldn't be in such a mess. How come we cannot fire them for not doing their job?
    2 May, 06:39 AM Reply Like
  • DUP
    , contributor
    Comments (198) | Send Message
     
    Not the fox guarding the hen house, It's Godzilla guarding Mothra's kids! Two monsters acting like they care!
    2 May, 05:43 AM Reply Like
  • ianharrison
    , contributor
    Comment (1) | Send Message
     
    Isn't that convenient, so let's follow were the political donations go. Do the banks give to political parties evenly or will Democrats bring in a bigger haul?
    2 May, 06:38 AM Reply Like
  • elliseconomics
    , contributor
    Comments (71) | Send Message
     
    IT depends, no one has ever offered protection like Obama. So many guilty not only got away but they were paid their bonus or due from the failing banks out of taxpayer funds ... and they walked. My guess is that Bill Clinton has already been making deals .... for the big bucks.....
    6 May, 02:44 PM Reply Like
  • charles8659
    , contributor
    Comment (1) | Send Message
     
    its a real shame its a country out of control this justice
    2 May, 06:39 AM Reply Like
  • mikehealey
    , contributor
    Comments (14) | Send Message
     
    Finally! What took so long?
    After all the fraud , misbehaver and huge bonus checks given to people that should have been arrested , the Federal government is finally doing some token watch guard duties. What a mess !
    2 May, 07:04 AM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    enough with the FED!
    a bunch of bureaucratic useless tools... America take back your country!
    start with Obama and work your way thru SEC to the Supreme Court!
    I almost forgot. get rid of John Kerry and forget about the Ukraine and Putin.
    ever since WW II the US has had it's nose in every ones business and where are we today? and don't tell me that you are better off.
    home ownership is at a 1995-6 LOW! another failed policy, Greenspan, Clinton, Rubin
    and other low lifes!
    2 May, 07:26 AM Reply Like
  • DUP
    , contributor
    Comments (198) | Send Message
     
    yupper, CHINA is now #1 economy, we are run by inept criminal dolts! rah rah rah. We are the dumbest country on earth...we let it happen...lets' keep militarizing the local cops also, thats' gonna work real well...just not for us citizens
    3 May, 09:54 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4298) | Send Message
     
    Don't be too sure of that; there's a lot of hidden debt in China's economy, too!
    6 May, 09:29 AM Reply Like
  • Red Lion
    , contributor
    Comments (10) | Send Message
     
    No wonder US GDP growth came in at .1%. This type of prejudice regulation harms the US economy.
    2 May, 08:37 AM Reply Like
  • elliseconomics
    , contributor
    Comments (71) | Send Message
     
    As 14.9% of the GDP is imputed, how hard is it to do some creative imputations ? I believe the number is negative and has been for some time... Government math .... 2 + 2 = What ever you need it to be.....
    6 May, 02:44 PM Reply Like
  • plschuler
    , contributor
    Comments (12) | Send Message
     
    How soon folks forget the meltdown of 2008 when the Sheriff was asleep.
    2 May, 09:04 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4298) | Send Message
     
    Don't worry; the next "reminder" is due soon!
    2 May, 11:33 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1555) | Send Message
     
    Spring 2015 if we elect another anti-business president.
    3 May, 10:32 AM Reply Like
  • Petrarch
    , contributor
    Comments (753) | Send Message
     
    none of these firms were the proximate cause of the GFC
    over or stupid regulation is not the answer

     

    I don't see Fannie, Freddie, the ratings agenices or the US Congress on this list.

     

    P
    2 May, 09:21 AM Reply Like
  • rjgottardi@gmail.com
    , contributor
    Comments (14) | Send Message
     
    For those who think we don't have to worry about this, I have a suggested reading, "Who Owns the Future?", by Jaron Lanier.
    2 May, 09:35 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1555) | Send Message
     
    Oh are you insinuation that Fannie, Freddie, the ratings agencies or the US Congress had any blame for the financial crisis!
    2 May, 09:46 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4298) | Send Message
     
    Who else?
    2 May, 11:35 AM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    Just another wall of bureaucracy. We had all the laws and rules in place before 2007/2008. This is just another deal for the galleries.
    All regulators - FED ,SEC, OCC, CFTC ,DOJ, Alan GR, FDIC, State Insurance Supervision, NY State Fin Dept., failed to act or were asleep at the switch pre-crisis.
    Who objected to Co2 sqared paper ? None is the answer. And the list of failings is a long one. More walls of papers and armies of inspectors will not change the game for better outcomes.
    2 May, 10:13 AM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2332) | Send Message
     
    So they're all on Double Secret Probation now???
    2 May, 10:24 AM Reply Like
  • Bossco
    , contributor
    Comments (50) | Send Message
     
    "Sheriff" wasn't asleep ... Was wide awake in bed with political mistress of doom.

     

    Any rear view mirror analysis must acknowledge that It was political intervention into banking that launched & progressed the problem. State & Fed legislators were media amplified in their demanding loose monetary supply specifically for mortgage & small brick & mortar business loans. I vividly remember outspoken urban representatives grabbing airtime to outright threaten banks.

     

    Maxine Waters perhaps the best example for us in SoCal. While directly tied to her pet bank OneUnited, her activism was unyielding. Any & all conservative opinions voicing concern was immediately met with accusations of anti-poor rhetoric with a sprinkling of race bating in Waters' specific. Case in point: Barney Frank versus John McCain.

     

    Google McCain May 25, 2006 Federal Housing enterprise regulatory reform act.
    2 May, 10:41 AM Reply Like
  • Buyandhold 2012
    , contributor
    Comments (2224) | Send Message
     
    The Fed will give extra scrutiny to 15 firms?

     

    Isn't that ironic?

     

    It was irresponsible government policies which encouraged and in fact compelled these firms to nearly go over the financial cliff in the first place.

     

    Having the Fed give extra scrutiny to 15 firms is like hiring a drug pusher to give extra scrutiny to recovering drug addicts.
    2 May, 02:55 PM Reply Like
  • nap.jerry
    , contributor
    Comments (61) | Send Message
     
    This is almost comical! Government interference caused the financial meltdown in the fist place by making it easier for high risk people to qualify (not really) for home loans. Then, the SEC was asleep at the wheel when those bundled securities were being sold. Seems it should have been easy to spot the fact that a bundle of bad loans equals an equally bad bundled security. So, another government group to oversee the overseers? Why don't we make people do their (i.e., Congress, SEC, etc.) jobs instead. AND, lo and behold, FIRE those that don't--what a concept!
    3 May, 01:23 AM Reply Like
  • Jason B
    , contributor
    Comments (297) | Send Message
     
    Who is forming a special unit to watch the Fed criminals? That's the real question. Senators and Reps caught with their pants down back in 2008 were gloriously successful at pinning all of the blame on the banks. Hilarious stuff.
    4 May, 11:42 AM Reply Like
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