U.S. Fed Toughens Capital Rule for Foreign Banks

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Mani
Published on
Updated on
Daniel Tarullo Federal Reserve

The Federal Reserve Board on Tuesday approved tight new rules for foreign banks to shield the U.S. taxpayer from costly bailouts. The Federal Reserve has thus given only minor concessions despite pressure from abroad to weaken the rule. $50 billion threshold for foreign banks According to the new rules, the largest foreign banks with $50 billion or more in U.S. assets will need to set up an intermediate holding company subject to the same capital, risk management and liquidity standards as U.S. banks. Earlier, foreign banks with sizable operations on Wall Street such as Deutsche Bank AG (NYSE:DB) (ETR:DBK) and Barclays…

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Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports