Federal Reserve says it may ask banks for extra capital in a crisis
- Health, energy stocks hit Wall St, Microsoft lifts Nasdaq
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium 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
- Notable Analyst Rating Changes 10/21: (CHK) (NRF) (AVT) Upgraded; (MEMP) (YHOO) (WWAV) Downgraded
- France to start dismantling 'Jungle' migrant camp on Monday
- Ex-Pinnacle Financial board member accused by U.S. SEC of insider trading
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!