The Fed Wire

The Federal Reserve, still dusting itself off from a fight that threatened to trim its powers, could emerge from a congressional overhaul of banking rules as the top cop over the nation’s largest financial institutions. Senate negotiators are considering…

Federal Reserve System – Bank – Financial services – United States – Finance

Originally from SFGate: Business & Technology

WASHINGTON (MarketWatch) – Big commercial banks would be barred from speculative investments in stocks and derivatives and prohibited from owning hedge funds or private equity firms, according to legislation introduced Wednesday by five senators. “There is a place for high-risk speculation on the prices of stocks or securities, but these bets can no longer be allowed to threaten our entire financial system,” said Sen. Jeff Merkley, D-Ore., a key sponsor. “Taxpayers should never again be told that they have to save bankers from their bad bets.” The bill would also require big investment banks that do not own commercial institutions to set aside additional capital and it prohibits investment banks from betting against packages of loans they sell to clients. The bill is based on a proposal dubbed the “Volcker rule” after former Federal Reserve Chairman Paul Volcker, who chairs Obama’s economic-advisory panel and was a key backer of the measures.

Originally from MarketWatch

Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It’s a step that may become a common move ahead of new regulations limiting overdraft fees. Rules set by the Federal Reserve that will ban…

Bank of America – Federal Reserve System – Debit card – Overdraft – Business

Originally from SFGate: Business & Technology

Long before the Fed raises short-term interest rates in the face of an improving economy, it will need to signal to the public that a change is in the works. Fed officials are intensifying discussions about how to send that sign when the time comes.

Originally from WSJ.com: Economy

FRANKFURT (MarketWatch) — German Bundesbank President Axel Weber said Wednesday the so-called “Volcker rule,” which aims to bar banks from certain forms of risk trading, has “significant shortcomings.” One shortcoming of the Volcker rule is that it most likely would not apply to investment vehicles, such as hedge funds or investment banks, said Weber, who is also a member of the European Central Bank’s governing council. “The most fundamental problem of the Volcker rule lies in the fact that a complete prohibition of certain activities — activities that are perhaps more risky but not necessarily economically inefficient — is a very far-reaching market intervention,” Weber said in a speech in Dublin, according to a transcript published of the Web site of the Bundesbank. The Volcker rule is named after former Federal Reserve Chairman Paul Volcker, who chairs President Obama’s economic-advisory panel and is a key backer of the proposed measures. Weber said the Volcker rule may have “unintended and unfavourable consequences.” “It could, for example, have undesirable effects on the transmission of monetary policy,” he said.

Originally from MarketWatch

To play by the rules set by the Federal Reserve that will prohibit banks from charging overdraft fees effective July 1, 2010, Bank of America Corporation (NYSE:BAC) said on Tuesday that it will eliminate such fees on debit card purchases starting June 19, 2010.
 
This move will restrict the debit card holders of BofA to spend more than what they have in their checking accounts. Customers with inadequate funds in their accounts will be declined if they try to purchase using debit cards. … [visit site to read more]

Originally from Daily Markets

NEW YORK (Reuters) – After a growth spurt at the end of 2009, the U.S. economy will slow in the months ahead, keeping the Federal Reserve from raising borrowing costs until the final three months of the year, a Reuters poll showed.

Originally from Reuters: Business News

NEW YORK (Reuters) – After a growth spurt at the end of 2009, the U.S. economy will slow in the months ahead, keeping the Federal Reserve from raising borrowing costs until the final three months of the year, a Reuters poll showed.

Originally from Reuters: Business News

Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It’s a step that may become a common move ahead of new regulations limiting overdraft fees. Rules set by the Federal Reserve that will ban…

Bank of America – Federal Reserve System – Debit card – Overdraft – Business

Originally from SFGate: Business & Technology

Long before the Fed raises short-term interest rates in the face of an improving economy, it will need to signal to the public that a change is in the works. Fed officials are intensifying discussions about how to send that sign when the time comes.

Originally from WSJ.com: Economy