Fed Approves Sale Of ING Direct To Capital One

In spite of reported concerns that Capital One’s proposed purchase of ING Direct would create yet another bank that was too big too fail, the Federal Reserve announced yesterday that it has signed off on the $9 billion deal. [More]

Federal Reserve On Verge Of Proposing New Capital Rules For Banks

Federal Reserve On Verge Of Proposing New Capital Rules For Banks

The Federal Reserve is expected to roll out new rules soon that could make big banks keep more capital reserves on hand, presumably leaving them with less money to lend. The idea is to make banks act more responsible with their stacks of chips and not need the government to bail them out. [More]

If Inflation Droops, Federal Reserve May Pump It Up

If Inflation Droops, Federal Reserve May Pump It Up

It’s tough for consumers to rationalize how inflation could be a good thing, especially if they haven’t received pay increases in years, but increasing costs are believed by many to be a sign of a healthy economy. That’s why Federal Reserve Chairman Ben S. Bernanke said Wednesday that the central bank will keep a close eye on inflation levels and may altar monetary policy to maintain the phenomenon if prices start to level off. [More]

Little Banks To Big Banks: Can You Please Stop Merging For A Little Bit?

Little Banks To Big Banks: Can You Please Stop Merging For A Little Bit?

With folks at the Federal Reserve already reportedly concerned that the sale of ING Direct to Capital One could create another too-big-to-fail bank, a group representing the nation’s smaller banks has raised its voice in concern. [More]

Banks Must Produce Living Wills To Tell Regulators How To Liquidate Them

Banks Must Produce Living Wills To Tell Regulators How To Liquidate Them

No one likes to imagine their own undoing, but that’s what the government has asked the largest American banks to do, mapping out liquidation plans in “living wills” that will help financial regulators pick apart their carcasses if they go under. The banks have until next year to submit their plans, which are mandated by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. [More]

Report: Fed Concerned Capital One/ING Direct Merger Could Create Another Too-Big-To-Fail Bank

Report: Fed Concerned Capital One/ING Direct Merger Could Create Another Too-Big-To-Fail Bank

Back in July, Capital One announced a deal to purchase online bank ING Direct USA for around $9 billion. And even though Cap One tried hard to quell ING customers’ screams of “nooooooo,” the folks at the Federal Reserve are reportedly a bit worried that the deal might create another bank so big that its failure would have a disastrous impact on the economy. [More]

Federal Reserve Says It Will Keep Interests Rates Low For 2 More Years

Federal Reserve Says It Will Keep Interests Rates Low For 2 More Years

In a move meant to ease uncertainty in the markets, the Federal Reserve pledged to keep interest rates low for the next two years. The Fed’s target rates, which banks use to set loan rates, have been close to zero since 2008, and previously said they would stay there for “an extended period.” The two-year designation is a sign that the Fed expects the economy to remain in troubled waters until at least 2013. [More]

Long-Awaited Fed Ruling Caps Swipe Fees At 21 Cents

Long-Awaited Fed Ruling Caps Swipe Fees At 21 Cents

The Federal Reserve unveiled its ruling today on the fees banks can charge merchants for processing debit cards at 21 cents a swipe. The cap is far less restrictive than the 12 cent ceiling set by the Dodd-Frank bill, but is still less than the current 44 cent average. It’s uncertain how this will affect the consumer. [More]

Fed: Economic Recovery Not Happening As Quickly As Expected

Fed: Economic Recovery Not Happening As Quickly As Expected

While some of us have managed to go back to our pre-bust ways of eating gold-dusted diamonds and speculating on real estate, the Federal Reserve said today that the overall economic recovery hasn’t moved as swiftly as it had previously expected. [More]

Banks Back In Business Of Lending Money, People Back To Borrowing

Banks Back In Business Of Lending Money, People Back To Borrowing

The New York Federal Reserve just issued its latest quarterly Household Debt & Credit report — which looks at the state of mortgages, home equity borrowing, auto loans and credit cars — and, for the first time in a few years, there are a number of not-so-bad things to say about things. [More]

Goldman Actually Borrowed From Fed Discount Window 5 Times, Contradicting Bank Claims

Goldman Actually Borrowed From Fed Discount Window 5 Times, Contradicting Bank Claims

Looks like Goldman has been a more frequent visitor to the Federal trough than they’ve been letting on. Despite testifying before Congress that they had only accessed the Federal Reserve’s discount window, which lets banks borrow cash from the government quickly and on favorable terms, just once, Bloomberg reports that recently released data shows they actually took at least five overnight loans from the Fed between September 2008 and 2010. [More]

Why Banks Threatening To Limit Debit Card Swipes To $50 Is Horrible, And Hooey

Why Banks Threatening To Limit Debit Card Swipes To $50 Is Horrible, And Hooey

As I mentioned on Friday, because the banks are pissed off, pretty soon you might not be able to pay for a restaurant meal or pay for groceries on your debit card. The banks are considering putting a $50-$100 cap on how much you can buy per transaction with a debit card. First, I think they’re bluffing. But, if they really followed through on it, this would seriously disrupt commerce across America. Let me paint you a picture of hypothetical supermarket checkout line. [More]

Banks Might Limit Amount You Can Buy On Debit Card

Banks Might Limit Amount You Can Buy On Debit Card

Grumbling over proposed limits to debit card swipe fees, banks are hinting they’re considering putting a cap on how much you can buy with a debit card. It could even be something like $50 or $100, forcing consumers to either pay with credit card or cash. [More]

Fed Might Rethink Capping Debit Card Swipe Fees

Fed Might Rethink Capping Debit Card Swipe Fees

The Fed told Congress yesterday that it might rethink the plan to cap debit card swipe fees at 12 cents per swipe. One of the hopes is that merchants would be able to pass on the reduced costs to consumers in the form of lower prices. Lawmakers piled on in the hearing, saying that it would “batter banks still reeling from the 2008 financial crisis.” How banks can both be posting soaring profits and still be “battered” and reeling is an accounting trick way over my head. [More]

Bernake Says Unemployment To Stay "Elevated"

Bernake Says Unemployment To Stay "Elevated"

Federal Reserve Chairman Ben S. Bernanke testified before the House Budget Committee today that he expects unemployment to “remain elevated” “for some time.” So if you were putting your job search on the back burner, thinking, “oh, I’ll just try harder when the economy gets better,” it might be time to reevaluate that strategy. [More]

Govt Misprints Ton Of New $100s

Govt Misprints Ton Of New $100s

A printing error on the fancy new $100 bills means that nearly a billion are in storage until the government figures out how many to destroy. The paper got creased during printing, leaving a portion of Franklin’s face uninked. It’s a $110 billion boo-boo! [More]

Animated Pig Bunnies Explain Quantitative Easing

Animated Pig Bunnies Explain Quantitative Easing

Still don’t understand quantitative easing? Is it really just “printing money” or something more subtle? These animated xtranormal pig bunnies seem to have a grasp, at least judging by the millions of hits this movie of them explaining it has gotten. “The only thing deflating is the Fed’s credibility,” says one pig bunny to the other. [More]

Fed Clamps Down On Credit Card Loopholes

Fed Clamps Down On Credit Card Loopholes

To shut down “fee harvesters” and other crafty tricks credit cards cooked up to escape the CARD act, the Federal Reserve has proposed three ways to tighten and clarify the rules. [More]