The Federal Reserve is expected to embrace a new global framework that requires giant financial institutions to hold extra capital, people familiar with the situation told the Wall St Journal.
The central bank's decision to accept the rules laid out by regulators in Basel, Switzerland, as part of a draft proposal that could come before Christmas is a defeat for giant U.S. banks that argued the guidelines needn't be so strict. They contended the Basel approach could prompt them to reduce lending and hurt the economy.
At the same time, it isn't clear the bigger capital buffers will accomplish what regulators set out to ..
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