WASHINGTON Regulators took a step Tuesday 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 3 percent to 5 percent. In addition, the banks' deposit-holding subsidiaries would have to increase that ratio to 6 percent.
If adopted, the rule would take effect in 2018.
It would apply to U.S. banks considered so big and interconnected that each could threaten the global financial system: Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, Morgan Stanley, Bank of New York Mellon and State Street Bank.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.