US unveils more plans to counter bank turmoil

Protection sought: Gruenberg participates in a meeting of the Financial Stability Oversight Council at the US Treasury in Washington. The FDIC chairman says that a buffer of long-term debt like the one proposed on Tuesday will help protect the fund. — AFP

WASHINGTON: US officials unveiled their latest response to this year’s bank turmoil with proposals to boost oversight of midsize lenders and require them to prepare better for potential failures.

The plans from the Federal Deposit Insurance Corp (FDIC) and the Federal Reserve (Fed) aren’t a sign of new stresses in the sector but are instead an attempt to ensure that lenders can be dissolved smoothly and quickly following any collapse.