Source / Courtesy: Yahoo news
WASHINGTON (CNNMoney) — The Federal Reserve is expected this week to release a set of proposed rules detailing how much reserve capital big banks will need to keep on hand in the future.
Tougher capital cushions are also a key step toward making banks safer and possibly averting future taxpayer bailouts.
The Fed could release proposed rules this week for some 31 banks with more than $50 billion in assets, sources familiar with the situation told CNNMoney.
Over the past two decades, banks drastically increased the money they use for loans and making financial bets, compared to the deposits they took in. Such leveraging is often cited as one of the causes of the 2008 financial crisis.