Financial Roundup: Lewis Faces Board, Sovereign Funds Cut, Small Banks May Fail
Will 300 small banks fail? Fortune’s Stanley Bing says that from 200 to 300 small banks will soon fail and be forced into mergers. [Source: Fortune]
FDIC to ease deposit rules — The FDIC is expected today to ease rules restricting weak banks from paying higher fees to attract brokered deposits. Until now, banks rated as being below “well-capitalized” have not been allowed to pay rates higher than T-bill yields. [Source: American Banker]
New York Fed gets new chief — William C. Dudley will replace just-confirmed Treasury Secretary Timothy F. Geithner as head of the New York Fed. Dudley was a behind-the-scenes engineer of the Fed’s role in the federal bailout. [Source: The Washington Post]
Citi may sell jet — Bailout-proneCitigroup has gotten so much negative press over a purchase of a new $50 million corporate jet that it may sell it. [Source: New York Post]
Peter Galuszka is a Virginia-based journalist with more than three decades of experience, including 15 years at BusinessWeek, during which he was twice Moscow Bureau Chief and International News Editor in New York.
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