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A government-wide hiring freeze has led the Federal Deposit Insurance Corp. to yank job offers to more than 200 new examiners, the front-line employees who closely monitor banks to ensure they operate safely and adhere to an extensive rule book.
The FDIC is already facing a staffing challenge, particularly with a lack of examiners, undermining its ability to reduce the risk of bank failures. A chronic shortage of examiners contributed to the failure of Signature Bank, one of three large banks to collapse in 2023, the agency has said.
Examiners are essentially charged with making sure a bank doesn’t fail, a critical function at the roughly 6,000-employee FDIC, of which roughly 2,300 are examiners. The agency oversees about 4,500 banks around the country, most of them small. It also insures trillions of bank deposits and winds down failing banks. Its work is funded through industry assessments.
Perhaps more significantly, the agency is already in need of additional examiners, with frequent turnover and staffing shortages contributing to major setbacks in recent years. Current and former regulators said they feared the situation could snowball if hiring cuts combine with an uptick in the departures of retirement-eligible employees.
A review of the March 2023 failure of Signature Bank found the supervisory group overseeing large financial institutions in the FDIC’s New York office had average vacancies of about 40 percent. For the six years before Signature’s collapse, the FDIC couldn’t adequately staff the team dedicated to the bank.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
Comments
slower moving, but possible larger GFC trigger, is making crypto part of mainstream financial institutions (many willing participants as toll takers, not liability holders).
signs :
- moving crypto oversight away from SEC (to commodities board w/no enforcement powers).
- opening up entirely to non-accredited investors.
u.s. never had a potus, and team, where somesuch has become major\primary store of wealth, and has already placed appointees with unfettered views on such a financial instrument. a bailout via drawing value from other assets would be a foregone conclusion.
Banks need some form of oversight. There should be some transparency. The only reason to do this is to further disrupt and erode our foundation.
At some point, there has to be some pushback on Dump. The switch from "honeymoon period" to "divorce request" had better happen pronto. Send him one-way back to Jeffrey Epstein's island (rename it Elba Island II), sign him up for one of Musk's test launches....do whatever it takes.
Toothless opposition.
The Trump administration's laissez-faire attitude towards crypto is also troubling.
Trump's meme coin launch was a very opportunistic way to capitalize on his office
which I found particulary disgusting.
https://www.cftc.gov/About/CFTCOrganization/DOE
https://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commission
FOTUS' recent memecoins are a perfect way of buying influence. All a donor/nation has to do is tell him what their blockchain ID is and he can confirm "their payment was received" --- totally anonymous yet completely 'transparent' in the public ledger.
The next GFC is going to be epic, I bet.....and it could well happen on FOTUS' watch.
yogibullbear, ur correct on CFTC.
i should have put in the extra effort to clarify no 'effective' enforcement based on its size & budget.
it is a reasonable guess that the doge proposal to merge CFTC w/SEC is not to increase cumulative resources for enforcement or anything else.