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Fed Said to Delay Bank Leverage Cap Until Basel Completed 

December 18, 2013
Jesse Hamilton, Bloomberg Businessweek

The Federal Reserve has decided to delay imposing limits on leverage at eight of the biggest U.S. financial institutions until a global agreement is completed, according to two people briefed on the discussions.

Fed officials want to wait for a finished rule from the Basel Committee on Banking Supervision before completing their own requirement for how much capital U.S. banks must hold as a percentage of all assets on their books, said the people, speaking on condition of anonymity because the process isn’t public. The international accord is shaping up as weaker in some respects than the U.S. plan.

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency had favored finishing a U.S. rule by year’s end, said one of the people. The Fed’s wait-and-see position is aligned with groups representing the banking industry, who have argued for a delay on grounds that the regulations should be consistent.

Read more: Bloomberg Businessweek

 
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