Fed finalises strict leverage ratio requirements for biggest banks
The Federal Reserve yesterday finalised a rule aimed at making it harder for some of the world's largest banks to take on excessive risk by applying abstruse risk-weightings. The new rule will also grant the Fed power to limit banks' ability to pay out dividends and bonuses if they fail to comply.
The central bank said it had finalised a rule, floated in July, to increase leverage ratio requirements for eight systemically important banks with more than $700 billion in consolidated assets or $10
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