More than two dozen foreign banks with at least $50 billion of global assets would face stricter U.S. capital rules under a Federal Reserve plan that’s aimed at lowering risks to the financial system.
The Fed staff proposed that most of the banks also be forced to comply with more stringent liquidity rules and pass stress tests analyzing how they would fare in a severe economic downturn, the central bank said Friday in an outline of the proposal. The board will vote today on whether to seek public comment on the plan, which would take effect in July 2015.
Deutsche Bank, based in Frankfurt, and London-based Barclays would be among the institutions that would have to keep more easy-to-sell assets in the U.S.
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