Banking Group Calls Fed's Credit Limit Rule Flawed

Law360, New York (July 23, 2012, 3:29 PM EDT) -- A major bank lobbying group on Monday said that a Federal Reserve proposal to limit the exposure the largest banks can have to any single counterparty was flawed and could significantly increase borrowing costs.

The Clearing House, a trade group representing the largest global banks, said in a study that the Federal Reserve's analysis regarding the single counterparty credit limit used an incorrect measure of risk to determine the limits that should be placed on the biggest banks. The result of that incorrect measure is that...
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