Some recent proposed regulatory changes by two key federal agencies are raising alarms among experts and former regulators, who warn that the moves could destabilize the banking sector and drive up energy prices.
The US Federal Deposit Insurance Corporation announced proposed rules on Regulations Implementing the Change in Bank Control Act that would tighten control over index fund managers’ investments in banks. The proposed rule would require asset managers who own more than a 10% stake in a regulated bank to secure FDIC approval through a written notice, adding a new layer of scrutiny on top of Federal Reserve Board oversight, which already reviews such investments.
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