Federal bank regulators have agreed to give the Federal Deposit Insurance Corporation unlimited authority to investigate banks, clarifying the agency’s power, which was in question during the financial crisis.
The F.D.I.C.’s board recently approved an agreement between the agency and regulators at the Federal Reserve and the Treasury Department.
It spells out the F.D.I.C.’s authority to make special examinations of banks.
It was approved 5 to 0.
Federal bank regulators were widely criticized during the financial crisis for failing to signal high-risk practices before the institutions failed.
The F.D.I.C., which takes over failed banks, has said it lacked access to information it needed to evaluate banks’ risk.
The Fed and two Treasury Department agencies, the Office of the Comptroller of the Currency and the Office of Thrift Supervision, have primary authority to regulate banks.
But the F.D.I.C. often serves as the backup regulator for banks, empowered to examine banks’ condition and operations.
The new agreement was signed by the F.D.I.C., the Fed and the two Treasury agencies
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