Utah People's Post

The Latest News from the Beehive State

Sunday, July 3, 2022
Log in
  • National News
    • Female Caseworker Killed & Doctor Shot in Philadelphia
  • State News
    • Car Chase Leads to Drug Arrest
  • Tech & Science
  • Health
    • How to Prepare For Ticks Season
    • Magical Weight Loss Bean Scam
  • Sports
  • Business
You are here: Home / Business / Federal Reserve Hitting U.S. Banks with Costly Requirements

Federal Reserve Hitting U.S. Banks with Costly Requirements

September 10, 2014 Posted by Contributor

imagesThe biggest U.S. banks are targeted by the Federal Reserve, who plans on adding costly new requirements that could reduce the risk of financial firms remaining too big to fail.

Six years after the financial crisis erupted, Daniel Tarullo, Fed Governor, explains that they mean to impose a capital surcharge. This modification would have U.S. banks required to maintain cushions that protect against losses. And this surcharge, however similar with the one agreed upon by international regulators, will be tougher on U.S. banks.

The Federal Reserve will also be penalizing those U.S. banks that rely on overnight loans and other types of volatile short-term funding solutions, and this penalty will determine the size of the capital surcharge.

As a result of this surcharge, many U.S. banks will be required to increase their capital cushions much more than global rivals will have to. However, this decision will follow the debate that will address whether Washington is merely better-protecting its banks or ensuring that they start off at a competitive disadvantage as opposed to global rivals.

The additional capital that banks will have to add will be determined shortly.

There have been several modifications after the financial crisis and banks have been required to increase their capital cushions, so much so that according to a Federal Financial Analysis, between 2007 and 2013, over $29 billion were added to their capital.

According to Mr. Tarullo, surcharge levels will increase noticeably for some institutions he calls SIFIs or systemically important financial institutions. However, not all banks will have to fear these surcharge levels.

The Federal Reserve’s intention is to increase the resiliency of these firms by making sure that the amount of loss-absorbing capital is enough to counter any potential risk to the financial stability of banks.

Banks such as Goldman Sachs Group In. or Morgan Stanley will be the first banks affected by the surcharge, as they rely especially on large short-term loans that are meant to help finance activities on clients’ behalf.

Share this:

  • Tweet
  • Share on Tumblr
  • Email

Filed Under: Business Tagged With: additional surcharge, capital cushion, federal reserve, financial cushion, loans, short-term loans, us bank surcharge, us banks

Woman working out at the gym

Just 23% of Americans Are Working Out Enough in Their Spare Time

June 29, 2018 By Amelia Donovan

Poliovirus Therapy Gives Brain Cancer Patients New Hope (Study)

June 29, 2018 By Amelia Donovan

United Airlines airplane

Passenger Mysteriously Dies on United Airlines flight Bound for Boston

June 28, 2018 By Amelia Donovan

Breakfast sandwich

Here Are Some Foods No Nutritionist Would Ever Eat

June 27, 2018 By Amelia Donovan

Poppy flower

UN Warns of Surge in Opium-based Drugs and Cocaine Supply

June 27, 2018 By Amelia Donovan

U.S.-Canada border

French Jogger Detained 2 Weeks for Accidentally Crossing Border

June 26, 2018 By Amelia Donovan

Plus size model

Normalizing Plus Size Could Fuel Obesity Crisis (Study)

June 25, 2018 By Amelia Donovan

Giant manta ray

Unique Manta Ray Nursery Spotted off Texas Coast

June 23, 2018 By Amelia Donovan

The rainbow flag

WHO Scraps Transgenderism from List of Mental Illnesses

June 22, 2018 By Amelia Donovan

456 People Dead at U.K. Hospital after Taking too Many Painkillers

June 21, 2018 By Amelia Donovan

Kenyan girls dancing

Kenyans Facing Poor Nutrition as Supermarket Shopping Is on the Rise

June 20, 2018 By Amelia Donovan

Pages

  • About
  • Contact
  • Privacy Policy GDPR
  • Staff
  • Terms and Conditions

Recent Posts

  • Just 23% of Americans Are Working Out Enough in Their Spare Time
  • Poliovirus Therapy Gives Brain Cancer Patients New Hope (Study)
  • Passenger Mysteriously Dies on United Airlines flight Bound for Boston
  • Here Are Some Foods No Nutritionist Would Ever Eat
  • UN Warns of Surge in Opium-based Drugs and Cocaine Supply
  • French Jogger Detained 2 Weeks for Accidentally Crossing Border
  • Normalizing Plus Size Could Fuel Obesity Crisis (Study)

Related Articles

  • Passenger Mysteriously Dies on United Airlines flight Bound for Boston

    Jun 28, 2018
  • Fishing boat in the Atlantic Ocean

    U.S. Seafood Dealer Lied About Fish Being Caught in U.S.

    Jun 14, 2018
  • Tesla car on the road

    Tesla’s Autopilot Software To ‘Nag’ Drivers to Keep Hands on Wheel

    Jun 12, 2018
  • Mexico Slaps Tariffs on U.S. Steel, Pork, and Bourbon

    Jun 6, 2018
  • Dairy cows on a pasture

    Kentucky Milk Plant Closes after Losing Contract with Walmart

    Jun 4, 2018
  • Tesla founder Elon Musk

    Elon Musk Upset About Latest Tesla Crash Being ‘Front Page News’

    May 16, 2018
  • Orange juice bottles on Whole Foods shelves

    Amazon to Roll Out New Prime Perks for Whole Foods Shoppers

    May 2, 2018
  • U.S. Liquor Store

    Alcohol Sales on Sunday No Longer Banned in Indiana

    Mar 5, 2018
  • Bitcoin coins on 100-dollar bills

    Iran Unveils Its First National Cryptocurrency

    Feb 23, 2018
  • Transavia Airlines plane taking off

    Man on Plane who Wouldn’t Stop Farting Causes Emergency Landing

    Feb 19, 2018

Categories

  • Business
  • Entertainment
  • Health
  • National News
  • Nature
  • Provo
  • Salt Lake News
  • Science
  • Sports
  • State News
  • Tech & Science
  • Technology
  • Uncategorized
  • West Jordan
  • West Valley City
  • World

Copyright © 2022 utahpeoplespost.com

About · Privacy Policy · Terms of Use · Site Map · Contact