Fed eases Basel rules for US banks

21 Dec 2011

The Federal Reserve issued a consultation on Tuesday on how it will apply the Basel III rules to the largest US banks — and it looks generous to all but the largest US institutions.

Banks with assets over $50bn will have maintain tier one common equity of 5% under stressed conditions. Banks that count as systemically important, in line with the international agreement reached in early November, will have to hold extra capital — a sliding scale up to 2.5% for the largest institutions, likely ...

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