The Federal Deposit Insurance Corporation (FDIC) is set to propose Tuesday a higher leverage ratio required to be maintained by big U.S. banks including JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C). According to Jesse Hamilton & Yalman Onaran of Bloomberg, the FDIC could set the leverage ratio of 5 percent and 6 percent, one for parent companies and another for their U.S.-backed lending units. The proposed leverage ratio of 6 percent is twice the international standard. The leverage ratio could force banks to earn lower profits besides selling more assets, since a higher ratio could make U.S. banks less competitive following reduction…
FDIC Set To Decide Leverage Ratio For Big Banks
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports