Foreign banks facing major shortfalls under new Fed rules

|By:, SA News Editor

The Federal Reserve has passed regulations for foreign banks on capital, debt levels and annual "stress tests" that could force 15-20 of them to raise billions of dollars in capital.

Overseas banks with U.S. assets of over $50B would have to form special holding companies in the country and maintain higher capital buffers than other countries require.

Deutsche Bank (DB), for example, would have an estimated hole of $7B under the new rules.

However, European Commissioner Michel Barnier said the EU wouldn't be able to accept "discriminatory measures."

Other banks to be affected include Credit Suisse (CS) and Barclays (BCS).