GOP-Backed Bill Would Force Big Banks To Raise More Capital

Law360, New York (February 11, 2013, 4:28 PM EST) -- A Republican-backed bill introduced Monday in the U.S. House of Representatives would force "too-big-to-fail" banks to raise an additional layer of potentially costly capital, without putting a limit on the size of the banks.

The Systemic Risk Mitigation Act, introduced by Rep. John Campbell, R-Calif., would force banks with $50 billion or more in total assets to issue bonds that would absorb losses should the institutions fail. However, unlike other measures introduced into the U.S. Senate or being discussed by members of the Federal Reserve Board,...
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