Topics

Tim Pawlenty
Regulators act to require stronger bank capital
Regulators act to require stronger bank capital

WASHINGTON — Regulators are acting to require U.S. banks to build a sturdier financial base to lessen the risk that they could collapse and cause a global meltdown. The eight biggest banks will have to meet stricter measures for holding capital — money that provides a cushion against unexpected losses — under a rule that regulators adopted Tuesday. The Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury's Office of the Comptroller of the Currency voted separately to require those banks to raise their minimum ratio of capital to loans to 5 percent from the current 3 percent. The banks' deposit-holding subsidiaries will have to achieve a...

Loading