US Regulators Clamp Down On Big Bank Leverage

Law360, New York (July 9, 2013, 12:45 PM EDT) -- The eight largest U.S. banks will have to maintain twice as much high-quality capital as required by an international agreement on bank capital standards under a rule released Tuesday by federal regulators.

The Federal Deposit Insurance Corp. approved a proposed leverage ratio 6 percent on the largest depository institutions and a 5 percent leverage ratio on their bank holding companies, effectively capping how much a bank can borrow to fund its businesses, in a unanimous vote. The Office of the Comptroller of the Currency and the...
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