In an open letter delivered today, Cornelius Hurley and William Isaac urged Elon Musk, along with the President, to take steps to reform or to eliminate the ineffectual $1.3 trillion Federal Home Loan Banks (FHLBanks).
My latest article, co-authored with Cornelius Hurley, was published today in Bloomberg Law. While we agree that U.S. banking regulation is in dire need of serious reform, we caution against speculation that the administration might cut the FDIC. As a former Chairman of the FDIC and, in Con’s case, a former Director of an FHLB, our long careers have helped us understand what works and what doesn’t in regulation. While the FDIC provides a vital service to American banking, we would advise the new administration to look at cutting a different entity: the FHLB system. Our article compares the historical context and present-day usefulness of these two bodies, and recommends a path forward.
Dismantling the FDIC Would Undermine a Fragile Banking System Read More »
My latest article in The Hill, coauthored with my good friend Tom Vartanian, offers guidance as the incoming Trump administration promises to modernize banking regulation. Regulation must become smarter, the number of federal financial regulators should be consolidated, and the roles of the FDIC and Federal Reserve should be refocused.
Trimming outdated bank regulation is a good idea that won’t be easy Read More »
I enjoyed addressing the Association of FDIC Alumni in D.C. last month. My keynote remarks touched on many of the topics in my paper “It’s Broken, So Let’s Fix It.”
AFDICA Keynote Remarks Read More »
Here is a blast from the past, sent to me by Ralph Elosser, formerly of the FDIC when it won a coveted award for cash management from the U.S. Treasury. You might recognize the guy on the far right who was a very young Chairman of the FDIC.
A blast from the past! Read More »
The Federal Reserve continues to struggle with adoption of Basel III. I firmly believe it is a futile and useless exercise, which should be abandoned, as I state in my most recent article in the American Banker, summarized here. I declined to adopt Basel I when I was Chairman of the FDIC and believe it
It’s time for the US to withdraw from the Basel capital accords Read More »
In our latest article in The Hill, my good friend Thomas Vartanian and I outline five key challenges standing in the way of financial stability in the US banking system.
5 ways to improve the stability of the financial system Read More »
My latest article in American Banker explains how it was uninsured deposits, not brokered deposits, that led to 2023’s bank failures.
Uninsured deposits, not brokered deposits, led to 2023 bank failures Read More »
William Isaac has released a new white paper on much-needed reforms for U.S. bank regulation and deposit insurance. The paper, “It’s Broken, So Let’s Fix It” uses Mr. Isaac’s decades of experience in banking and regulation to make recommendations on accounting rules, regulatory oversight, deposit insurance reform, and better and more effective US-centric capital rules.
Isaac Proposes Overhaul of U.S. Bank Regulation & Deposit Insurance Read More »
My latest article in The Hill emphasizes the importance of identifying leaders at the FDIC who can attract and retain talent by treating employees with respect and dignity. The FDIC is an important institution with a noble goal, and misbehavior must not be tolerated.
Former FDIC chair: Workplace culture at the FDIC can and must be fixed. Read More »
