GO
Loading...

Enter multiple symbols separated by commas

Fed Proposes New, Tougher Rules for Big Banks

The Federal Reserve said the largest U.S. banks and financial companies should hold extra cash on their balance sheets to cushion themselves against financial crises.

Federal_reserve_blg_seal3.jpg
Getty Images

The proposal by the chief U.S. banking regulator, made Tuesday, will affect banks with assets over $50 billion in assets.

There are even stricter rules for companies with over $500 billion in assets such as JPMorgan Chase, Goldman Sachs and Citigroup.

U.S. banks opposed the rules. Banks said they would be forced to hold too much extra cash, hampering their ability to make loans.

The rules were first spelled out by international regulators in Basel, Switzerland, and were specifically targeted at large, interconnected, global financial institutions.

Banks

  • Attorney General Loretta Lynch enters a packed news conference at the U.S. Attorneys Office of the Eastern District of New York following the early morning arrest of world soccer figures, including officials of FIFA, for racketeering, bribery, money laundering and fraud on May 27, 2015 in New York City.

    U.S. legal authorities said they have the jurisdiction to go after some FIFA officials for corruption charges.

  • Jeffrey Lacker, president of the Federal Reserve Bank of Richmond.

    Policymakers must ensure that creditors must be willing to let firms fail in order to restore discipline, a top Fed official said.

  • Treasury Secretary Jack Lew testifies before the Senate Finance Committee on Capitol Hill, February 5, 2015 in Washington.

    U.S. Treasury Secretary Jack Lew said conversations between central bankers in the U.S. have shown they understand the need to clearly communicate.