|
|
|
|
26-Sep (Reuters) — The Federal Reserve will seek significantly more
capital from the largest U.S. banks and give some relief to smaller banks as
it considers reforms to its annual ‘stress test,’ Fed Governor Daniel Tarullo
said on Monday.
The reforms will include a new capital ‘buffer’ to better protect the
financial system from a shock at the nation’s largest lenders like JPMorgan
Chase, Bank of America and Wells Fargo.
“In pulling this package of modifications together, we have consciously
shaped them in accordance with the principle that financial regulation should
be progressively more stringent for firms of greater importance,” Tarullo
said in a speech at Yale University in New Haven, Connecticut.
Under the plan, some regional banks would face less scrutiny during the
annual stress test. Those lenders will only undergo a ‘quantitative’ review
of their systems.
More details of the capital plan for large banks will be offered next
year, said Tarullo, who added that the proposal will not impact the 2017
stress test.
|
|
Read the rest of the article at
USA Gold
