Officials say the move would reduce systemic risk by limiting the interconnectedness of large financial institutions.
The industry posted "another positive quarter," the FDIC says, but faces continued challenges including low interest rates.
Once again, U.S. banks are over-exposed to commercial real estate at a time when the market is expected to turn.
Results were "mostly positive," the FDIC said, with profits rising 1.4% and the number of problem banks falling to a 7-year low.
The benefits in bank conversion are clear, but the path to getting approval from regulators that tend to distrust innovation is challenging.
"There are signs of growing credit risk, particularly among loans related to energy and agriculture,” said the FDIC's chairman.
"Establishing margin requirements for non-cleared swaps is one of the most important reforms of the Dodd-Frank Act," said the FDIC chair.
Regulator says Ebrahim Shabudin was so "fixated" on protecting United Commercial Bank's reputation that he hid millions of dollars in losses.
The Taxpayer Protection and Responsible Resolution Act creates a Chapter 14 for banks and replaces Dodd-Frank's orderly liquidation authority.
Banks once dreaded rate rises. Are they right to look forward to them now?
On the fourth try, U.S. systemically important financial institutions aimed to be more realistic about how they would approach a bankruptcy.
The defunct lender's liquidating trust is opposing the payments to executives who were accused of contributing to its collapse.
