Regulators Increase Leverage Ratio of Largest Banks

Banking regulators took another step to raise leverage ratios for the largest banks in a bid to prevent serious issues from another 2008-like market crash.

Leverage ratio: $68 billion required as margin on over $400 trillion in OTC risks

The largest banks, which will be required to keep in reserve $68 billion under the new plan, are said to have a significant combined exposure to OTC derivatives in excess of $400 trillion, according to the Comptroller of the Currency Administrator of National Banks quarterly report on derivatives activities.  The leverage ratio is also designed to cover other potential...