Model risk author, MS with Academic Press. Air BnB host. Training as a Certified Divorce Financial Analyst (CDFA). PhD quant, 24 years on Street. Model risk/validation, regulatory, pricing, VaR, ETL, CVA, PFE.
FDIC CHAIR ON SVB, US 2023 BANK FAILURES Recent speech below. Mentions new FDIC paper on deposit insurance rework. “This experience has focused our attention on the need for meaningful action to improve the likelihood of an orderly resolution of a large regional bank under the FDI Act without the expectation of invoking the systemic risk exception. In light of our experience, we are taking important steps to make reliance on the systemic risk exception much less likely. They include better aligning capital requirements with changes in the value of securities, building loss-absorbing capacity with long-term debt requirements, improving resolution planning at the bank level, and strengthening bank supervision… “In late July 2023, the three federal banking agencies issued a Notice of Proposed Rulemaking (NPR) to implement the Basel III capital rule.9 There are many aspects to this proposal, but one in particular is a step toward addressing one of the key vulnerabilities of the recent failures. Under the proposal, unrealized losses on available for sale securities would flow through regulatory capital for all banks with more than $100 billion in assets. This means that these banks, in order to maintain their capital levels, would need to retain or raise more capital as these unrealized losses occur.” Federal Deposit Insurance Corporation (FDIC) Silicon Valley Bank New York Community Bank (NYCB) Signature Bank First Citizens Bank #firstrepublic #fdic
