The Federal Reserve will retain supervision of banks with over $100 billion of assets as part of a regulatory reform plan, Financial Times reports. Senate Banking Committee Chairman, Chris Dodd, had initially suggested hiving off all bank supervision to a single regulator, but is now likely to propose that the 23 biggest institutions stay under the Fed’s oversight.
A new “resolution” regime for failing, but systemically important, institutions will allow the government to wind up a company quickly. Treasury Secretary, Timothy Geithner, said that only the central bank is qualified to oversee the core of the system and backed the Fed’s retention of authority over the largest banks.
