Senators Demand Bigger Capital Reserves At Top Banks

Law360, New York (August 7, 2012, 5:24 PM EDT) -- A bipartisan pair of U.S. senators demanded Monday that the Federal Reserve pursue stronger capital reserve standards to prevent the nation’s largest banks from failing and causing collateral economic damage, adding to a prominent chorus calling for more aggressive action.

Sens. Sherrod Brown, D-Ohio, and David Vitter, R-La., said a Fed proposal that would more than triple capital requirements was insufficient to suitably reduce risks posed by so-called systemically important financial institutions, or SIFIs.

“Your proposed rule on capital standards misses a huge opportunity to address...
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