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Fed Adopts New Bank Rules Targeting Risk 

February 20, 2014
Dunstan Prial, Fox Business

The Federal Reserve on Tuesday announced the adoption of several new rules aimed at reducing the amount of risk taken by large foreign banks with operations in the U.S. in an effort to prevent another financial crisis.

Foreign banks with assets of $50 billion or more will now be required to adhere to  “enhanced prudential standards” initiated under the Dodd-Frank Wall Street Reform bill and related Consumer Protection Act.

The concern by the Fed and other regulators is that big foreign banks -- those in the too-big-to-fail category such as Deutsche Bank (NYSE: DB) and Barclays (NYSE: BCS) -- with large U.S. operations and close ties to U.S. banks could trigger a crisis that requires a taxpayer bailout similar to the fallout from the 2008 financial crisis.

Read more: Fox Business

 
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