U.S. Banks Said to Seek Relief From Regulators as Deposits Swell

[dkf]

U.S. regulators have asked some banks to take more deposits from large investors even if it’s unprofitable, and lenders in return are seeking relief on insurance premiums and leverage ratios, according to six people with knowledge of the talks.

Deposits are flooding into the biggest U.S. banks as customers seek shelter from Europe’s debt crisis and falling stock prices. That forces lenders to raise capital for a growing balance sheet and saddles them with the higher deposit insurance payments. With short-term interest rates so low, it’s hard for financial firms to reinvest the new money profitably.

Regulators have asked banks to take the deposits anyway, three people said, with one lender accepting $100 billion. The regulators want lenders to take the deposits because it improves the stability of the financial system, according to one of the people, who said U.S. banks are viewed as places of strength.

Some of the largest ones have talked with regulators about softening rules for ratios that measure capital and assets, according to the people, who declined to be identified because talks are private. At least one asked for a waiver on paying higher premiums to the Federal Deposit Insurance Corp., which is less likely to be granted, one of the people said.

http://www.bloomberg.com/news/2011-08-26/u-s-banks-said-to-seek-relief-from-regulators-as-deposits-swell.html

[Syrinx]

1. banks need to get off "relief"

[dipsydoodle]

3. What rhymes with bankers ?

.

[Syrinx]

5. I don't want to incriminate myself

But I ain't no damn banker!

Hang 'em high.

[atreides1]

6. Wankers?

Just saying.:rofl:

[dipsydoodle]

9. Its common UK Cockney / London slang.

In this case rhyming slang as in dog and bone = 'phone etc. Goes back at least as far as when the HSBC took over the Midland bank in the '80's. Prior to that the full expression was Midland Banker as in "he's real Midland banker".

You got it right anyway.:)

[Aerows]

8. Stankers?

Cankers? Gankers? Wankers?

I think all of those apply. For those of you who don't play MMO's, ganking is when a high level character repeatedly kills a low level character just to be a prick.

[jwhitesj]

2. This doesnt make sense

The bank is saying we can't lend because of leverage restrictions and then they are saying they cant take in more deposits because they can't lend. It makes no sense.

[Bluebear]

4. No more bank welfare

[Supersedeas]

7. The problem of safekeeping people's money and obtaining insurance to insure that

that money is not mishandled so as to breach the duty of safekeeping.

Ah, those poor poor banks and their pockets full of cash.

[bemildred]

10. This story makes no sense. nt