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Fed Says It's Overhauling Standards for Large Bank Examiners

  • Measures follow criticism over regulatory capture of agency
  • Large-bank supervision group will set minimum standards
Carmen Segarra, former senior bank examiner with the Federal Reserve Bank of New York, listens during a Senate Banking Subcommittee hearing with William C. Dudley, president and chief executive officer of the Federal Reserve Bank of New York, not pictured, in Washington, D.C., on Nov. 14, 2014.

Carmen Segarra, former senior bank examiner with the Federal Reserve Bank of New York, listens during a Senate Banking Subcommittee hearing with William C. Dudley, president and chief executive officer of the Federal Reserve Bank of New York, not pictured, in Washington, D.C., on Nov. 14, 2014.

Photographer: Andrew Harrer/Bloomberg
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The Federal Reserve said it’s setting tougher standards for examiners of the biggest U.S. banks, following criticism by lawmakers that the agency has been captured by the Wall Street firms it supervises.

The planned changes include creating a formal process for examiners to express dissenting views on oversight, such as whether lenders are complying with banking rules and appropriately responding to regulators’ requests. The overhaul follows a year-long review that found inconsistency across the Fed’s 12 regional banks tied to supervision practices and reports produced by examiners.