Stories Driving the Week The Flaming FTX Fiasco and Its Fallout A CoinDesk op-ed this week lays bare the core issue behind FTX’s collapse, which its author says mainstream news outlets have obfuscated: “the misuse of customer funds,” as opposed to a bank run or a run on deposits. The piece, entitled “FTX’s Collapse Was a Crime, …

Washington, D.C. — Francisco Covas, BPI executive vice president and head of research, issued the following statement today in response to remarks by Federal Reserve Vice Chair for Supervision Michael Barr on bank capital requirements: We commend Vice Chair Barr for his thoughtful approach, but we worry he is overly focused on the cost of calibrating …

Introduction One of the defining questions for a liquidity regulation is: “Against what liquidity risks should a bank self-insure?”  Self-insuring against a liquidity risk means having the resources to meet liquidity demands in a given situation, without making use of funding from the central bank.  In “Why do we need liquidity regulation when we have …

Washington, D.C. – The FDIC has proposed changes to its new supervisory appeals structure aimed at increasing its independence, but the system still requires significant overhauls to preserve banks’ due process rights, BPI, the American Bankers Association, the American Association of Bank Directors, the Consumer Bankers Association, the Independent Community Bankers of America and the …