Bank Regulators Seek Stricter Measures

    0
    5

    Regulators took a step toward requiring eight of the largest U.S. banks to meet a stricter measure of health to reduce the threat they pose to the financial system. The Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency proposed that banks increase their ratio of equity to loans and other assets from three per cent to five per cent. In addition, the banks’ deposit-holding subsidiaries would have to increase that ratio to six per cent. If adopted, the rule would take effect in 2018 and would apply to U.S. banks considered so big and interconnected that each could threaten the global financial system. It includes Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, Morgan Stanley, Bank of New York Mellon, and State Street Bank.