FDIC Officials Seek More Sway Over Passive Bank Investments (1)

April 25, 2024, 3:31 PM UTC

The Federal Deposit Insurance Corp. is weighing new hurdles for investment companies that want to take major stakes in banks.

The regulator debated on Thursday competing proposals to bolster scrutiny of influence that investment companies exert over bank holding companies. Ultimately, the FDIC tabled both plans but signaled it would seek more say over a contentious area that’s historically been handled by the Federal Reserve.

The power that big asset managers like BlackRock Inc. and Vanguard Group Inc. could have over companies in which they invest has become a focus in Washington. The Fed grants permission for fund ...

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