Minneapolis Fed launches too-big-to-fail plan
Four-step plan proposes stricter capitalisation rules for big banks, looser regulation for smaller institutions
The Federal Reserve Bank of Minneapolis has put forward a plan to sharply increase the capital requirements of big banks, with the aim of eliminating the risk of a public bailout in the case of a financial crisis.
The document also calls for community banks to be unburdened from the more onerous regulations, as well as the imposition of a tax on the borrowing of non-bank lenders.
The Minneapolis Fed considers that leaving unchanged capital requirements for systemically important financial
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