US Federal Reserve Bank of New York President William Dudley said US regulators, despite having made the financial system safer and less prone to panics, still had not eliminated the threat posed by institutions considered “too big to fail.”
“This is work that we absolutely must complete,” he said in prepared remarks he was scheduled to deliver yesterday at a conference on financial regulation in New York. “Without a well-functioning resolution process, the consequences of such a failure could still be catastrophic.”
Dudley’s comments come amid uncertainty over how far the incoming administration of US president-elect Donald Trump will go in dismantling rules designed to prevent a recurrence of the financial crisis of 2007-2009. Republicans in the US Congress are preparing legislation that would roll back much of the 2010 Dodd-Frank Act that included regulations designed to prevent a repeat of the meltdown.
Dudley said the US financial system was “much more resilient” than it was before the crisis, as reforms had made banks better able to absorb shocks and had removed structural issues that made the system more vulnerable.
Still, banks had not yet done enough to allow for their own orderly resolution in an emergency, he said.
“This requires having clean parent holding company structures, less corporate complexity, and essential service and support operations that are able to continue to operate even when the parent company becomes non-viable,” he said.
Dudley also said banks had not done enough to encourage whistle-blowing to expose wrongdoing at an early stage.
“Big problems can be nipped in the bud when people speak up and senior management responds appropriately,” he said.
Dudley did not talk about his economic outlook or monetary policy. Fed officials are set to enter a quiet period on Tuesday ahead of their Dec. 13 and 14 meeting, when analysts and traders widely expect them to raise their benchmark interest rate for the first time since late last year. Other US central bankers in recent days have signaled their willingness to tighten monetary policy this month, as the jobs market shows signs of improvement and inflation moves closer to the Fed’s target.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last