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U.S. Fed to consider final bank leverage rules on April 8 

April 3, 2014
Emily Stephenson, Reuters

U.S. bank regulators will meet next week to vote on final rules that would force the biggest U.S. banks to rely less on debt to fund their businesses, the Federal Reserve said on Tuesday.

The Fed's board of governors will meet on April 8 to finalize the so-called leverage requirements, seen as much tougher than the rules crafted by international regulators when U.S. officials first proposed them in July 2013.

The rules are part of an global agreement to fortify banks known as Basel III. Unlike risk-based capital requirements, leverage limits are calculated as a percentage of a company's total assets, and are considered harder to game.

The Fed, Federal Deposit Insurance Corp (FDIC) and Office of the Comptroller of the Currency (OCC) proposed forcing the eight biggest U.S. banks, including JPMorgan Chase and Citigroup, to maintain equity capital equal to 6 percent of their total assets.

Read more: Reuters

 
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