Fed may retain bank oversight

The Federal Reserve could retain oversight of large bank holding companies under a scaled-back regulatory reform plan being considered by key senators, but important questions remained unanswered, lobbyists said.

In a retreat from a bold proposal to streamline a patchwork bank regulatory system, legislators were considering keeping supervision of companies such as Citigroup and Bank of at the Fed, as Reuters reported in February.

It was still unclear, lobbyists said, if the Fed under the evolving plan would be an "umbrella supervisor", continuing to rely on other agencies for detailed bank exams, and how many companies might be put under the Fed.

One option, they said, was to assign holding companies with assets of $100 billion (Dh367.3bn) and up to the Fed, which would include nearly two dozen major firms.

Other, more expansive options were also being considered, with Senate Banking Committee Chairman Christopher Dodd expected to unveil legislation as soon as this week after months of negotiations with fellow Democrats and Republicans.

Regulatory reform is a top domestic priority of President Barack Obama.

 

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