- 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).