Federal Reserve says it may ask banks for extra capital in a crisis
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
WASHINGTON (Reuters) - Large U.S. banks may have to boost their reserves to protect against losses in the face of a financial crisis, the Federal Reserve said on Thursday as it outlined exactly how it may demand such capital.
If regulators determined that the financial system was threatened they could call for more bank reserves - known as the “countercyclical capital buffer.”
On Thursday the Fed promised not to move abruptly but to give leading banks ample time to sock away more capital if such a measure was necessary.
JPMorgan Chase & Co, Bank of America Corp and Wells Fargo & Co are among the roughly 10 banks that would have to answer to the new rules.
The emergency measure was conceived in the Dodd-Frank legislation and is designed to fortify banks against catastrophic losses.
The proposal is one of the latest meant to prevent a repeat of the 2008 financial crisis.
(Reporting by Patrick Rucker; Editing by Leslie Adler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- bluebird bio (BLUE) to Offer $200M of Common Stock
- Notable Analyst Rating Changes 12/7: (MELI) (MMM) (AZO) Upgraded; (HELE) (MUR) (AMCX) Downgraded
- Greeks strike against austerity before budget vote, bailout review
Create E-mail Alert Related CategoriesReuters
Related EntitiesJPMorgan, Bank of America, Wells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!