FINANCE BRIEF: FDIC Official Warns of Bank Failure Overreaction

FDIC Vice Chair Travis Hill said federal regulators are trying to do too much to shore up the banking system following a string of failures this year.

Hill said a slate of new capital and resolution proposals, a review of bank merger policy, and a host of other rules in development threaten to hike costs for banks and their customers.

“While I think that some response to the bank failures is warranted, I fear that an overreaction is underway,” Hill, a Republican who served as a policy deputy to former FDIC Chair Jelena McWilliams, said in a Thursday appearance at ...