Grind for November 2nd, 2018
“Better slip with foot than tongue.”
– Benjamin Franklin
Federal Reserve wants to loosen rules for large US banks
The Federal Reserve on Wednesday voted 3-1 on a proposal to significantly loosen rules for major US banks like Capital One and Bancorp.
The changes would not affect the largest banks (like Chase).
“Regional lenders would be either entirely released from certain capital and liquidity requirements, or see those requirements reduced,” reports The Wall Street Journal. “They could also, in some cases, be subject to less frequent stress tests.”
The proposal would divide large banks into four groups, with the biggest changes impacting lenders with assets between $100 and $250 billion.
These banks would no longer have to follow the liquidity coverage ratio (which requires lenders to hold assets they can sell for cash in emergencies). The plan would also reduce the amount of capital these banks must maintain.
Banks with assets between $250 and $700 billion would see a 70-85% reduction in the liquidity coverage ration requirement they currently face.
The changes outlined in the proposal would reduce the regulatory burden on banks “while maintaining the most stringent requirements for firms that pose the greatest risks,” says Fed Chairman Jerome Powell.
Fed governor Lael Brainard (the one dissenting vote) worries the plan would “weaken the buffers that are core to the resilience of our system” and increase “the risk that American taxpayers will be on the hook.”
The Fed is also considering scaling back the frequency of stress tests for major banks from every year to every other year. Earlier this week, the Fed voted to reduce the capital banks must hold against derivatives exposures.
Liberal media ignores investigation into FL gubernatorial candidate Andrew Gillum
An FBI corruption probe into political skullduggery in Tallahassee has created an uncomfortable situation for Florida gubernatorial candidate Andrew Gillum just days before the midterms.
And the liberal media is ignoring it.
Andrew Gillum, age 39, is running against Ron DeSantis to become Florida’s next governor as Rick Scott makes a bid for the Senate.
He has been serving as the Mayor of Tallahassee since 2014.
Gillum has come under fire for accepting money and gifts from undercover FBI agents who presented themselves as businessmen interested in developing Tallahassee.
Earlier this month, Gillum claimed he was not the focus of the FBI’s investigation.
But as noted by former FBI Assistant Director Ron Hosko, subjects of federal investigations rarely know they are the subject until “you have handcuffs on you or when an indictment is returned by the grand jury.”
Gillum is facing ethics complaints regarding:
— A lavish trip to Costa Rica with lobbyists
— Use of office funds for a trip intended to drum up support for his gubernatorial campaign
— Acceptance of a $1,000 ticket to see Hamilton in New York City
— Failure to report political donations from undercover FBI agent Mike Miller
Gillum has said little in response to the accusations against him (other than claiming the ordeal is a Republican-led attack), but with a slight lead over DeSantis, it could be that he’s just trying to run out the clock in hopes that he will secure the governorship before he is accused of breaking the law.
“The mayor seems totally oblivious to even the appearance of a conflict of interest,” says Common Cause Florida board member Pete Butzin. “He’s got to understand this thing is going to come back and bite him.”
Gillum says he wants voters to have “certainty” around his ethics when they hit the polls on Tuesday. “There has yet to be a finding of ethical violation of me and certainly nothing criminal,” he said. “And I’ve asked people to measure me off of what my 15 years of service have been.”
According to the latest polls, Gillum leads DeSantis by about 5%.
GOOD TO THE LAST DROP:
Did you know… People with blue eyes are better able to see in the dark.