US regional banks dip as FDIC's proposed overhaul fans regulation fears

PacWest Bancorp

15/08/2023 11:37

** Shares of U.S. regional banks fall after the Federal
Deposit Insurance Corp's latest regulatory proposal
    ** PacWest Bancorp  PACW.O , First Horizon  FHN.N  and
KeyCorp  KEY.N  down between 1.1% and 1.8%
    ** FDIC on Monday said it would issue a notice of proposed
rulemaking that will be a "comprehensive restatement" of the
rules surrounding banks living wills
    ** Living wills are submitted by banks to outline plans for
liquidation and shutdown of their businesses, should they fail
    ** "The proposed rule would require a bank to provide a
strategy that is not dependent on an over-the-weekend sale,"
FDIC Chairman Martin Gruenberg said
    ** The wipeout of three lenders this year has increased odds
of tighter regulation and led to stricter capital requirements
for the industry
    

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))