Monday, 30 November 2015
Last updated 2 days ago
May 14 2014 | 10:11am ET
The Federal Reserve has issued a stark warning to banks: Observe the buyout leverage limits it introduced with the Office of the Comptroller of the Currency last year, or face further action.
“Judging from aggregate market data, it appears that many banks have not fully implemented standards set forth,” Todd Vermilyea of the Fed’s Division of Banking Supervision and Regulation said. “A lot of work has been done to date by agencies to assess compliance with the guidance, but clearly much more work remains to be done and stronger supervisory action may be needed.”
While the OCC has publicly warned banks on the rules, which advise banks not to issue senior debt for buyouts worth more than six times a company’s cash flow, the Fed has until now taken a quieter approach, sending private letters to banks.
Still, the Fed has indicated it will go easier on the banks it regulates—Goldman Sachs, Morgan Stanley and foreign firms—than will the OCC, which has proclaimed a “no exceptions” policy. By contrast, the central bank said it would allow the banks under its purview to participate in a small number of such deals, totaling no more than 2% of their leveraged-loan book.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…