Two Probes Launched Into Fed's Large-bank Examination Program

MarketWatch Pulse

The Federal Reserve said Thursday its examinations of large banks are the subject of two separate probes. The Fed's inspector-general is looking at whether there's adequate methods for decision makers at both regional banks and the Fed board to obtain all the necessary information to make supervisory assessments and whether channels exist for decision makers to be aware of divergent views. Separately, the Federal Reserve board is looking at whether it's getting the information needed to ensure consistent and sound supervisory decisions as well as being aware of divergent views. The Fed probes come amid attention to the New York Fed's supervision of major banks, in particular a fresh revelation into a leak of information to a former official who moved to Goldman Sachs. The Senate Banking Committee on Friday is examining the New York Fed's bank supervision and "regulatory capture."

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