Relaxing bank rules. What goodies are the banks getting?

 

Source: Peter Eavis, N.Y.Times ( Paid Registration )

The Federal Reserve proposed loosening rules for 16 financial institutions, an important move forward in the Trump administration’s effort to roll back bank regulation.

Perhaps the most significant change concerned a rule aimed at making sure banks have enough cash in times of crisis. The rule, known as the liquidity coverage ratio, requires banks to stockpile so-called liquid assets (like Treasury securities) that can be sold quickly to raise cash during a crunch period. The Fed’s proposal would allow 11 banks, including large regional lenders like SunTrust and BB&T, to stop complying with the ratio altogether, and it relaxes the ratio for four other firms.

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