Fed moves to strengthen limits on bank size

|By:, SA News Editor

The Fed today releases for comment a proposed rule prohibiting a financial company from merging with another if their combination's liabilities would exceed 10% of the total of all financial companies.

The move is another step in implementing the intent of the Dodd-Frank financial reform act. Comments are due by July 8.

Only JPMorgan (JPM +0.5%), Bank of America (BAC +0.6%), Citigroup (C +0.7%), and Wells Fargo (WFC -0.2%) would be affected - at least in the short term - says the Financial Stability Oversight Council.