The Fed is overhauling standards for large-bank examiners

Washington

THE Federal Reserve said it's setting tougher standards for examiners of the biggest US banks, following criticism by lawmakers that the agency has been captured by the Wall Street firms it supervises.

The planned changes include creating a formal process for examiners to express dissenting views on oversight, such as whether lenders are complying with banking rules and appropriately responding to regulators' requests. The overhaul follows a year-long review that found inconsistency across the Fed's 12 regional banks tied to supervision practices and reports produced by examiners.