The Federal Reserve approved new rules mandating U.S. banks to finance their operations with more equity, in addition to forcing compliance to tougher capital requirements. The new Basel regulations announced by the Fed will force banks to set aside more capital.
The FED agreed Tuesday new arrangements mandating U.S. banks to maintain common equity, representing shares plus retained earnings equal to 7 percent of risk-weighted assets. Besides the U.S. banks will be required to hold...
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