THE GOOD: Trying fix banks
THE BAD: Trying fix banks
THE UGLY: Trying fix banks European style will result in small banks stuck in rules and regulation that will result in them closing the door on business that need capital!
Fed proposes stricter capital rules for banks ( THE ASSOCIATED PRESS June 7, 2012, 8:34PM ET )
The Federal Reserve wants U.S. banks to set aside more money to cushion against unexpected losses, a key step in preventing another financial crisis.
The Fed governors voted 7-0 on Thursday to propose rules requiring all banks hold at least 7 percent of their assets in capital reserves. That’s up from a minimum of 2 percent currently required and in line with international standards.
The rules are open to comment until September. They will be finalized after that. But some banks won’t have to meet the requirements until 2019. That’s because the rules have to be coordinated with international standards that are being phased in over the next seven years.
Happy Networking and Investing,