Regulators Propose Stricter Rule for 8 Big Banks
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed that banks increase their ratio of equity to loans and other assets from 3 percent to 5 percent.
In addition, the banks’ deposit-holding subsidiaries would have to increase that ratio to 6 percent.
If adopted, the rule would take effect in 2018.
It would apply to U.S. banks considered so big and interconnected that each could threaten the global financial system: Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, Morgan Stanley, Bank of New York Mellon and State Street Bank.