US Floats Rule To Nix Ratings From Bank Capital Measures

Law360, New York (December 7, 2011, 3:52 PM EST) -- Federal regulators unveiled a proposal Wednesday that would remove a reliance on credit ratings agencies in determining the capital the nation's largest banks must reserve to guard against risks in their trading accounts.

Under a proposed rule put forward by the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency, the 16 largest banks with trading assets of $1 billion or more will instead have to subject their trading book to a formula that will set capital requirements based...
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