Seeking Alpha

Foreign banks facing major shortfalls under new Fed rules

  • 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).
Comments (1)
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    But in exchange you get to manipulate markets, have Congress do your bidding,
    pay yourself outrageous salaries, and be guaranteed you can't fail. What's not to love?
    19 Feb, 08:28 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|