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...
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