Stocks slide after FDIC ensures banks are "superbly capitalized" • Good Assurance


Curious to know what has just brought the stock to the lowest of the session?

Reuters may have released another unexpected report, according to which the main US bank regulator, the Federal Deposit Insurance Corporation, has said it is not concerned that volatility in equity and futures markets is a threat to the banking system, told Reuters the country's lenders have a lot of capital to deal with new market fluctuations.

Of course, it's a true copy of what the OCC did yesterdaywhen the spokesman for the Office of the Foreign Exchange Controller said that "the federal banking system is strong … with capital and cash close to the highest historical levels and improved profit and risk management. the federal banking system is well positioned to handle more adverse market conditions "and, in the process, triggered another round of sales.

Today, for unexplained reasons, it is the FDIC that has decided to intervene, when President Jelena McWilliams told Reuters that the banking regulators had begun a review of the so-called system of bankruptcy. CAMELS rating used to assess the health of the country's banks.

"Frankly, the recent market movements have given us no reason to worry," she said in an interview. "The banks are well capitalized – in fact, they are superbly capitalized at this stage.

"Nothing that happened in December worried usMcWilliams said in hopes of calming the market and getting the opposite result.

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McWilliams, who became chairman of the FDIC in June and was appointed by President Donald Trump to review the post-crisis rules, said new rules can be adapted to help smaller banks. On Thursday, she told Reuters that the regulators had begun a review of the system used to assess banks' financial health.

She said the Federal Financial Institutions Review Board, an inter-agency group of the country's banking regulators, was checking whether the agencies were systematically applying the CAMELS rating.

Ms. McWilliams said she was worried that any difference could prompt banks to look for less stringent regulators: "You do not want to hold a discussion forum," she said. "You want to make sure that the banks know that they are going to have the same move," regardless of the regulator.

And, with this strange warning coming out of the sky, the actions quickly disappeared and almost fell. as traders are once again wondering why, in less than 10 days, the banks, the OCC and the FDIC have once again ensured that "the banks are doing well" and that they are "well placed" to make faced with a crisis, while no one was wondering what. in front in the first place.

Anyway, some extra "insurance" like this – maybe the dive protection team should go to the next nation – and the world of investors will see how much US banks are are really prepared for a crisis.