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https://youtu.be/dka4fHQI4ZQ?t=46

According to the video, they say the Fed regulates and supervises foreign branches of its member banks, and I wanna know how the Fed does that. Does the Fed send their officials to each foreign branch to supervise them on-site, or does the Fed ask foreign branches of its member banks to send their financial statement reports regularly?

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What we know is that foreign branches of US banks are part of the bank, not a separate entity , so indeed the Fed directly regulates them as a consolidated part of the overall bank. What we do not know is whether Fed regulators travel overseas to inspect operations , versus relying on US based bank staff for reports.

So for example the Federal Reserve was very involved in the “London Whale” losses at JP Morgan London branch in the early 2000s, but we don’t know if they were boots on the ground in London.

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  • $\begingroup$ "What we do not know is whether Fed regulators travel overseas to inspect operations." Who do you refer to by "we" in that sentence? Most American people? Is it some kind of confidential information only shared among high-ranking Fed officials? $\endgroup$
    – cdleace
    Commented Jul 19, 2023 at 1:12
  • $\begingroup$ The details of an individual bank’s supervision are supposed to be kept confidential by the bank’s regulatory staff. By ‘we’ I meant the general public. $\endgroup$
    – dm63
    Commented Jul 19, 2023 at 5:56

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