Federal Reserve Proposes Rule to Limit Bank Mergers

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The Federal Reserve just released a proposed rule that would limit the size of US banks. Apparently the rule would not effect the banks as they stand right now,  but would only come into force if two of the country’s financial institutions were to merge. The proposed rule would implement section 622 of the Dodd-Frank Act. There may be some argument about the necessity of such a rule, and those in the banking industry are sure to argue that it adds unnecessary rigidity in a time of capital accumulation among large banks in China. The Fed is seeking comment on…

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