Leverage Cap Leaves Big Banks With Unpalatable Choices

Law360, New York (July 9, 2013, 8:14 PM EDT) -- Federal regulators on Tuesday suggested boosting the capital requirements for the biggest U.S. banks above even international benchmarks, backing a proposal experts say would force the nation’s eight largest banks to potentially cut lending, slash dividend payments or make other tough calls in order in order to comply.

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed a leverage ratio of 6 percent on the largest federally insured depository institutions and a 5 percent leverage ratio on...
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