Bank of America, JP Morgan Chase, Citigroup, Bank of England, HSBC, Royal Bank of Scotland, HSBC’s parent UBS, UBS’s parent Credit Suisse and the European Central Bank have all been named as ‘indivisible banks’ as part of a landmark report by the US Government Accountability Office (GAO) that found that banks had a “clear obligation to ensure that they do not create new and distinct risk pools.”
The report also found that “indispensible banks” are “generally well positioned to protect themselves from financial shocks,” with a combined total of $1.1 trillion in assets.
This is a large chunk of assets, but only $1,000,000 per bank.
While the GAO report was widely criticized by critics, it was endorsed by the Trump administration and Congress in its final report.
The GAO found that the financial institutions’ “systemic risk” is “high,” with banks and other financial institutions “highly vulnerable to new risks,” as well as the potential for financial instability and systemic risk.
The report was also critical of the “federal regulatory system” that “does not provide for a robust, independent assessment of systemic risk,” which led to the conclusion that “banks and other large financial institutions should not be required to maintain their own financial systems.”
A few banks have been forced to take on more risk than the others, but not all of them, the GAT said.
For example, Bank Of America has faced multiple scandals including a 2013 firebombing in New York City, which resulted in the death of an employee, and the 2013 hack of the U.S. Department of Energy’s electric grid.
The Trump administration has been accused of trying to roll back Dodd-Frank, which established the Consumer Financial Protection Bureau (CFPB) and required banks to have an independent and transparent internal oversight system.
The banks also faced criticism from former Secretary of Labor Robert Reich, who accused the banks of creating “too big to fail.”
Reich also questioned why the government was spending billions of dollars to monitor the financial industry, given that the banks are so small and have limited capacity.
The federal regulators have since agreed to increase oversight and regulations on the banks.
The Office of the Comptroller of the Currency (OCC) has also taken over the role of overseeing the financial system.
Under Dodd-Feinstein, the OCC had a mandate to oversee the banks and to make sure they were acting in the best interest of consumers.
However, the Federal Reserve is currently in the process of implementing new guidelines that would require banks to be more accountable to the public.
These regulations are expected to be published this year, according to Reuters.
The OCC is the primary regulator of the banking system.
Its regulations and supervision include: requiring banks to do a better job of ensuring the integrity of customer accounts, limiting the amount of money that banks can spend on customer accounts and establishing stricter criteria for checking accounts.
The regulator also oversees the size of insured deposits and the adequacy of the collateral to back up those deposits.
The Fed is also the primary financial regulator for banks.
While some of these rules are aimed at improving the quality of the financial sector, other regulations could limit banks’ ability to compete in the markets and could have a negative impact on consumers, according a recent report by advocacy group Better Markets.
The banking industry has also faced some criticism from consumer advocates, who have argued that the government should not spend billions of taxpayer dollars to create a more accountable financial system, and instead, regulate the banks themselves.
some of the most vocal critics of the Dodd-Ferguson laws are banking lobbyists.
For instance, the Consumer Federation of America has criticized the law’s “mandatory arbitration clauses,” which require banks that have reached an agreement with a consumer to “obtain and defend the consumer’s rights.”
Additionally, the American Bankers Association has criticized Dodd-FEI for creating “a revolving door between government regulators and big banks.”