US Fed ramps up demands for corrective actions by regional banks - Bloomberg News

The Federal Reserve has issued private warnings to several banks with assets of $100 billion to $250 billion, focusing on capital, liquidity, technology, and compliance.

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Relevant topic timeline:

8/29/2023

US financial regulators green lit new rules aimed at reducing the cost of bank failures

US financial regulators have approved new rules requiring banks with at least $100 billion in assets to issue around $70 billion in long-term debt in order to prevent bank failures and the need for government bailouts.

9/5/2023

Fed’s Debt Runoff Is ‘Painless’ at $1 Trillion Mark, With Bigger Test Ahead

The Federal Reserve has sold about $1 trillion of its bond holdings without causing strains in financial markets, as part of its balance sheet reduction program.

9/13/2023

Bank Deposits See Biggest Outflow Since Failure of Silicon Valley Bank as Fed Ramps Up Support for Distressed Banks

US banks are experiencing significant deposit outflows, with total bank deposits plunging by over $70 billion in a week, the lowest levels since May, leading to concerns about the ongoing regional banking crisis; meanwhile, US commercial banks have also suffered significant losses in deposits, with 60% of deposits moving to higher-yielding money market funds, and the balance of unrealized losses on securities at commercial banks rising to $558 billion in Q2; to address these issues, the Federal Reserve has reached an all-time high of $107.8 billion in its banking loan facility to provide funding to distressed banks.