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Fed Supervision of Largest Financial Firms Under Review

Investigation will evaluate whether Fed examiners are too deferential to the banks they oversee.

By Christopher Condon and Jeff Kearns, Bloomberg | Updated on November 20, 2014

The Federal Reserve said it will conduct a review of its supervision of the largest, most systemically important financial institutions in the United States.

The Fed also asked the central bank’s Office of Inspector General to examine how reserve banks make supervisory assessments and whether officials are aware of “divergent views among an examination team,” the Fed said today in a statement issued in Washington.

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