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Fed proposes easing capital rules, testing of some big banks

Federal Reserve looks to ease capital rules, stress testing of some big banks

Reported by: AP [ Published on: October 31, 2018 21:00 IST ]
Image Source : AP Fed proposes easing capital rules, testing of some big banks

WASHINGTON (AP) — The Federal Reserve is proposing to ease requirements for holding capital and cash for U.S. banks that are big but smaller than the Wall Street mega-banks.

The Fed's proposal is the latest move by federal regulators to relax government oversight of financial firms in line with President Donald Trump's objectives.

The Fed governors also are looking to ease the schedule for the agency's "stress tests" for banks, based on their size and risk.

Fed officials are aiming to relax rules implemented under the 2010 law enacted in response to the financial crisis that pushed the economy into the Great Recession.

But Gov. Lael Brainard, the only Fed board member not appointed by Trump, warned that the moves would raise the risk of another taxpayer bailout of big banks.

Disclaimer: This is unedited, unformatted feed from the Associated Press (AP) wire.

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