Fed Proposes Tougher Risk Rules For Big Banks

Law360, New York (December 20, 2011, 5:16 PM EST) -- The Federal Reserve Board recommended new rules Tuesday that would require the nation's largest banks to reduce their risk taking and boost their capital and liquidity cushions to avoid a repeat of the 2008 financial crisis and the government bailouts that followed.

In a long-awaited proposal mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Fed unveiled suggested capital, leverage and liquidity requirements for banks with at least $50 billion in combined assets and nonbank financial firms deemed systemically important by the Financial...
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